Sequoia Capital-backed antivirus software maker Quick Heal Technologies Ltd made a weak stock market debut on Thursday with its shares listing 5 per cent below the issue price.
The shares opened for trading at Rs 305 on the Bombay Stock Exchange (BSE) compared with the issue price of Rs 321.
After touching an intraday high of Rs 329.95 and a low of Rs 246.00, shares extended losses and closed the day at Rs 254.45, down 20.73 per cent on BSE in a strong Mumbai market.
Meanwhile, Manohar Malani, managing director of NCS Computech Ltd has complained to the Securities and Exchange Board of India (SEBI) that Quick Heal did not disclose its entire shareholding details in its IPO documents.
In a response, Quick Heal said that NCS Computech was an erstwhile distributor of the company’s products, business arrangements with whom were discontinued in 2014 on account of NCS’ failure to pay its outstanding dues.
"The company would like to clarify that it has not received any amounts towards share applications money or for subscription of shares from any of the claimants in the year 2000 or at any time thereafter and has never allotted any equity shares of the company to the claimants at any point in time," it added.
Some also blamed pending service tax claims on the firm to its poor debut.
The Rs 468 crore ($68.8 million) public issue of the antivirus software provider closed on February 10 and was oversubscribed around 10 times.
While bulk of the money from the offer for sale would go to the promoters, Sequoia will take out around Rs 87.8 crore in the issue. It had invested Rs 36 crore in Quick Heal in 2010 and separately also bought shares worth Rs 24 crore from the firm’s promoters.
The VC firm owns a 10.25 per cent stake in the company and is selling less than half of it. It would almost triple its investment, as per VCCircle estimates.
Quick Heal, founded in 1993, is an IT security solutions provider. The company has partnered with Microsoft and Intel. Its products are certified by ICSA Labs and AV-Test. The firm has global offices in UAE, the US, Japan and Kenya.
For more info about the IPO, click here and here.