The initial public offering of Sequoia Capital-backed anti-virus software maker Quick Heal Technologies Ltd was oversubscribed 9.68 times led by institutional investors, high net-worth individuals (HNIs) and corporate investors who bid aggressively on the final day of the issue.
Non-institutional investors (HNIs and corporates) bid for around 36.7 times the issue reserved for them. While qualified institutional buyers (QIBs) bid for 4.34 times the quota reserved for them, retail investors' portion was oversubscribed 2.6 times on the final day.
The issue that got off to a slow start with 15.01 per cent subscription on day 1, led by retail investors. On day 2, the IPO was covered 77.5 per cent, again led by retail investors who remained confident and bid for 1.38 times their quota on day 2.
Earlier, the company raised Rs 134 crore (about $19.7 million) from anchor investors, including BNP Paribas Advantage and Reliance Mutual Fund.
The issue opened for subscription in a price band of Rs 311-321.
The company aims to raise up to Rs 250 crore (about $38 million) through a fresh issue of shares. In addition, there is an offer for sale of up to 6.8 million shares by promoters and Sequoia Capital.
At the upper end of the price band, the issue would be worth Rs 468 crore ($68.8 million).
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.
It is the third IPO this year, after that of staffing company TeamLease Services Ltd and auto-parts maker Precision Camshafts Ltd.
Recently concluded TeamLease IPO was oversubscribed 65 times, becoming the second-best showing for an IPO in eight years. Last year, VRL Logistics' IPO was oversubscribed 73 times.