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Quick Heal Technologies Buyback Review – Offer Details, Price, Dates & more

In this article, we will discuss about Quick Heal Technologies Limited Buyback offer, buyback price, buyback size, record date, company financial, buyback necessity and its impact on company.

Quick Heal Technologies Limited Buyback Details

Buyback TypeTender Offer
Buyback Opening Date May 20, 2019
Buyback Closing DateMay 31, 2019
Buyback Offer AmountRs. 1750,000,000/-
Buyback No. of Shares6,363,636
Face ValueRs. 10/-
Date of Buyback ApprovalMarch 5, 2019
Date of Public AnnouncementApril 15, 2019
Buy Back PriceRs. 275/-
Buy Back PremiumMarch 5, 2019

Quick Heal Buyback Opening and Closing Date

The starting and closing date of this buyback is from MONDAY, MAY 20, 2019 to FRIDAY, MAY 31, 2019.

Quick Heal Buyback Cash Offer

The Cash Offer to Buy-back up to 6,363,636 (six million three hundred and sixty three thousand six hundred and thirty six) fully paid-up equity shares of the Company of face value of Rs. 10. Each representing approximately 9.02% and 9.04% of the total number of equity shares.

Quick Heal Buyback Record Date

The decided record date is Friday, April 26, 2019.

Quick Heal Buyback Price

At a price of Rs. 275 (Rupees Two hundred and seventy five only) per Equity Share.

Quick Heal Buyback Size

For an aggregate amount not exceeding Rs. 1,750 million (rupees one thousand seven hundred and fifty million only) excluding any expenses incurred or to be incurred for the buyback like filing fee payable to sebi, advisors’ fees, public announcement publication expenses, printing and dispatch expenses, transaction costs viz. Brokerage, applicable taxes such as securities transaction tax, gst, stamp duty, etc.


Quick Heal Technologies Buyback Acceptance Ratio

Find profit & profit percentage based on various acceptance rate, The profit is calculated based on 1000 shares.

Acceptance RatioTotal Shares AcceptedBuyback PriceBuyback AmountProfitProfit%
20%
40%
60%
80%
100%

Profit is calculated from 12th May 2019 share price i.e. Rs.54.15 per share of Quick Heal Technologies Limited.

According to the above table, if a share owner applies for 1000 shares of Quick Heal Technologies limited & gets 20% acceptance from the company, the owner of this 1000 shares will sell 200 shares @ Rs.56 per share & receive Rs.370 as profit amount & 0.68% profit percentage on selling these 200 shares back to the company.

Similarly, if the owner gets 60% acceptance of share from the company, the owner will sell 600 shares @ Rs.56 & receive a profit of Rs.1,110 @ 2.05% profit percentage.


Quick Heal Technologies Limited Buyback Overview

Quick Heal Technologies Limited BuybackThe Company is one of the leading providers of IT security software products and solutions in India with a market share of about 34% in the retail segment. Its end customers include home users, small offices and home offices (SOHO), SMBs, enterprises, educational institutions, as well as government agencies and departments.

Its portfolio includes solutions under the widely recognized brand names “Quick Heal” and “Seqrite” for desktop and laptop security, mobile / smartphone security for retail segment and endpoint security, network security, cloud-based enterprise mobility management, and data protection solutions for enterprise and government segment.

The equity shares of the Company were listed at BSE Limited (Code: 539678) on February 18, 2016 and National Stock Exchange of India Limited (Code: QUICKHEAL) on February 18, 2016.

The paid up equity share capital of the Company for the year ended March 31, 2018 was Rs. 703.88 million and total free reserves for the year ended March 31, 2018 was Rs. 6,626.36 million.


Company Finances – Quick Heal Technologies Limited

The brief audited financial information of the Company as extracted from the audited standalone results for the last three financial years and limited reviewed standalone results for the nine-month period ended December 31, 2018 are provided below:

ParticularsLimited ReviewedAudited
For the Nine-
months ended on
December 31,
2018*
For the year
ended on March
31, 2018 *
For the year
ended on March
31, 2017 *
For the year
ended on March
31, 2016 *
Revenue from
operations
2,275.493,162.222,990.222,984.90
Other income240.20298.75277.7694.46
Total Income2,515.693,460.973,267.983,079.36
Total Expenses
(excluding Interest
Depreciation&
Amortisation and Tax)
1,370.531,924.912,017.761,916.91
Depreciation &
Amortisation
179268.82308.67236.78
Profit before
exceptional   items   &
taxes
966.161,267.24941.55925.67
Exceptional items50.0075.0944.13
Profit Before Tax916.161,192.15897.42925.67
Provision for tax
(including deferred
tax)
313.78403.37305.73301.89
Profit After Tax602.38788.78591.69623.78
Paid-up  Equity  Share
Capital
705.53703.88701.02700.30
Share Application
money
0.06
Reserve & Surplus6,999.986,667.446,089.445,699.67
Net worth#7,705.517,371.326,790.526,399.97
Debt
Total debt

Quick Heal Technologies Limited Buyback Dates

Date of the Board meeting held to approve the proposal for Buy-back of Equity SharesTuesday, March 5, 2019
Date of publication of Public Announcement for the Buy-backTuesday, April 16, 2019
Record Date for determining the Buy-back Entitlement and the Eligible ShareholdersFriday, April 26, 2019
Buy-back opens on / Buy-back Opening DateMonday, May 20, 2019
Buy-back closes on / Buy-back Closing DateFriday, May 31, 2019
Last date of verification by Registrar to Buy-backTuesday, June 11, 2019
Last date of intimation to the Stock Exchange regarding acceptance or non-acceptance of tendered Equity Shares by the Registrar and Manager to the Buy-backTuesday, June 11, 2019
Last date of settlement of bids on the Stock ExchangeWednesday, June 12, 2019
Last date of return of unaccepted demat shares by Stock Exchange to Seller Member / BrokerWednesday, June 12, 2019
Last date of extinguishment of Equity Shares bought backWednesday, June 19, 2019


Necessity of Quick Heal Technologies Limited Buyback

The Buyback is being undertaken for the following reasons:

  • The Buyback will help the Company to distribute surplus cash to its shareholders holding Equity Shares thereby enhancing the overall return for them;
  • The Buyback, which is being implemented through the tender offer route as prescribed under the Buyback Regulations, would involve a reservation of up to 15% of the equity shares, which the Company proposes to buyback, for small shareholders or the actual number of Equity Shares entitled as per the shareholding of small shareholders on the Record Date.
  • The Buyback is generally expected to improve return on equity through distribution of cash and improve earnings per share by reduction in the equity base of the Company, thereby leading to long term increase in shareholders’ value; and
  • The Buyback gives an option to the Eligible Shareholders to either participate in the Buyback and receive cash in lieu of their Equity Shares which are accepted under the Buyback, or not to participate in the Buyback and get a resultant increase in their percentage shareholding in the Company post the Buyback, without additional investment.

Impact of Quick Heal Technologies Limited Buyback on the Company

We believe that the Buyback is not likely to cause any impact on the profitability or earnings of the Company, except to the extent of reduction in the amount available for investment, which the Company could have otherwise deployed towards generating investment income.

Assuming the response to the Buyback is to the extent of 100% (full acceptance) from all the Eligible Shareholders upto their entitlement including the Promoters and Promoter Group, the aggregate shareholding and the voting rights of the Promoters and Promoter Group of the Company, may increase to 72.85% post Buyback from the current pre Buyback shareholding of 72.32%, and the aggregate shareholding of the public shareholders in the Company may decrease to 27.15% post Buyback from the current pre Buyback shareholding of 27.68%.

The debt-equity ratio post Buyback on standalone as well as consolidated basis will be compliant with the permissible limit of 2:1 prescribed under Section 68(2)(d) of Companies Act and Regulation 4(ii) of the Buyback Regulations, even if the response to the Buyback is to the extent of 100% (full acceptance) from all the Eligible Shareholders upto their Buyback Entitlement.

ConsolidatedStandalone
ParametersPre Buy-
back
Post Buy-
back
Pre Buy-
back
Post Buy-
back
Net Worth (Rs. in Lakhs)7,371.325,621.327,238.675,488.67
Return on Net Worth (%)11.14%12.71%11.98%13.71%
Earnings Per Share (EPS) (Basic) (in Rs.)11.2312.3511.8213.00
Book Value per share (in Rs.)104.7287.80102.8485.73
Price / Earnings Multiple23.6521.5122.4720.43
Total Debt / Equity Ratio

Basis of Calculating Quick Heal Technologies Buyback Price

The Equity Shares of the Company are proposed to be bought back at a price of Rs. 275/- per Equity Share.

The Buyback Price of Rs. 275/- per Equity Share has been arrived at after considering various factors including, but not limited to the trends in the volume weighted average prices and closing price of the Equity Shares on the Stock Exchanges where the Equity Shares of the Company are listed.

The closing market price of the Equity Shares as on the Intimation Date was Rs. 202.05 and Rs. 202.80 on the BSE and the NSE respectively.

More on Quick Heal Technologies Buyback Price Calculation

The Buyback Price represents:

  • Premium of 37.87% and 33.87% to the volume weighted average market price of the Equity Shares on the BSE and the NSE, respectively, during the 3 (three) months period preceding February 27, 2019, being the date of intimation to the Stock Exchanges regarding the date of the Board Meeting to consider the proposal of the Buyback (“Intimation Date”); and
  • The premium of 28.98% and 27.07% to the volume weighted average market price of the Equity Shares on the BSE and the NSE, respectively, during the 6 (six) months preceding the Intimation Date; and
  • Also, premium of 36.10% and 35.60% over the closing price of the Equity Shares on the BSE and the NSE respectively, as on the Intimation Date.

Source of Funds for the Buyback

The maximum amount required for Buyback will not exceed Rs. 1,750 million (Rupees One Thousand Seven Hundred and Fifty Million Only) (excluding expenses incurred or to be incurred for the Buyback like filing fee payable to SEBI, advisors’ fees, public announcement publication expenses, printing and dispatch expenses, transaction costs viz. brokerage, applicable taxes such as securities transaction tax, GST, stamp duty, etc.).

The Company shall transfer from its free reserves or securities premium account, a sum equal to the nominal value of the equity shares bought back through the Buyback to the Capital Redemption Reserve account.

The funds for the implementation of the proposed Buyback will be sourced out of free reserves or securities premium of the Company and any other source as may be permitted by the Buyback Regulations or the Act. Borrowed funds from banks and financial institutions, if any, will not be used for the Buyback.

The maximum amount mentioned above is 23.87% of the aggregate of the fully paid-up equity share capital and free reserves as per the latest standalone audited financial statements of the Company as on March 31, 2018, which is within the prescribed limit of 25%.


Quick Heal Technologies Limited – Manager to the Buyback

Nomura Financial Advisory and Securities (India) Private Limited
Ceejay House, Level-11, Dr. Annie Besant Road, Worli, Mumbai – 400018
Tel: + 91 (22) 4037 4037; Fax: +91 (22) 4037 4111
Contact Person: Mr. Vishal Kanjani
Email: [email protected]
Website: www.nomuraholdings.com/company/group/asia/india/index.html
SEBI Registration Number: INM000011419
Validity Period: Permanent

Quick Heal Technologies Limited – Registrar to the Buyback

Link Intime India Private Limited.
Address : C 101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai – 400083
Tel: +91 (22) 4918 6200; Fax: +91 (22) 4918 6195
Contact Person: Mr. Sumeet Deshpande
E-mail: [email protected]
Website: www.linkintime.co.in
SEBI Registration Number: INR000004058
Validity Period: Permanent

Quick Heal Technologies Limited Contact Details

Company Contact Details
Quick Heal Technologies Limited
CIN: L72200MH1995PLC091408
Registered Office: Marvel Edge, Office No. 7010 C & D, 7th Floor, Viman Nagar, Pune – 411 014.
Phone: +91 (20) 6681 3232; E-mail: [email protected]; Website: www.quickheal.co.in
Contact Person: Mr. Vinav Agarwal, Compliance Officer

 


Quick Heal Technologies Limited Buyback News

News 1 – Buyback PDF / Letter of Offer [Download]


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