Quick Heal Technologies Buyback approved by its Board on 05-03-19 comprises buyback up to 63,63,636 Equity Shares of the Company, being 9.02% of the total paid up equity share capital of the Company, for an aggregate amount not exceeding Rs. 175 crore at a price of Rs. 275 per
Equity Share. Quick Heal Technologies Buyback represents approximately 9.02% of the total paid-up equity capital of the Company and is on a proportionate basis under “Tender Offer” route.
See List of all Forthcoming and Recent Buybacks
Quick Heal Buyback: Updates
- Live Bidding
- Quick Heal Buyback Entitlement Ratio 16.53%
- Buyback opens 20-5-19 to 31-05-19
- Quick Heal Buyback RD is 26-04-19
Quick Heal Technologies Buyback : Key Info
Buyback 2019 | |
|---|---|
| Announcement | 27-02-19 |
| MP on this date | 200.5 |
| Board meet | 05-03-19 |
| Type | Tender |
| Buy Back Price | 275 |
| MP befo BM | 224 |
| % Premium on MP | 22.66% |
| BuyBack Size- Rs. Cr | 175 |
| BuyBack Size- Shares | 6,363,636 |
| Tot No.of shares | 70,388,183 |
| % Buyback | 9.04% |
| Equity Capital- cr | 70.39 |
| FV of Share in Rs. | 10 |
| Record Date | 26-04-19 |
| Buy Back Issue date | 20-05:31-05-19 |
| Shares reserved- Retail | 954,545 |
| Shares on RD | 5775196 |
| Buyback Entitlement | 16.53% |
| Shares Tendered | 3,231,988 |
| Tendering ratio | 55.96% |
| Retail response | 338.59% |
| Aceeptance % | 29.53% |
Quick Heal Technologies Buyback : Estimate of Acceptance Ratio:
This framework is based on estimation of shareholding of Quick Heal Technologies shareholders who hold around 1000 number of shares. To this we have added estimates for
1) Few additional purchase of Shares by existing shareholders with eye on earning additional returns through buyback.
2) Purchase of Shares by Arbitrage investors.
Based on approximations indicated above and considering a moderate tendering ratio, under normal circumstances Quick Heal Technologies Buyback could have acceptance ratio of 20-40 %, a figure that will depend significantly on new arbitrage investors who buy into the stock.
Estimated Returns: Quick Heal Technologies Buyback
The absolute returns/Loss that may accrue to an Investors/Arbitrage trader are a function of Percentage Acceptance Ratio and Price Post Buyback. Investors may kept in mind that stock markets are quite volatile at this juncture and there are many political and other uncertainties related to international markets. We have depicted estimated Absolute Returns in a table form as a function of various possible combinations of Acceptance Ratios and Price Post Buyback.
Shares Bought | 800 | Nos. | |
|---|---|---|---|
| Buyback Price | 275 | ||
| Absolute Returns | |||
| Price when posted | 220.00 | ||
| investment (Rs.) | 176000 | ||
| MP Aft Buybk | |||
| Acceptance % | 190 | 200 | 210 |
| 20% | -5.91% | -2.27% | 1.36% |
| 30% | -2.05% | 1.14% | 4.32% |
| 40% | 1.82% | 4.55% | 7.27% |
This post is purely for informative and educational purpose and is in no way suggestive of taking any position in the counter. Profit or Loss in any buy sell operation in stocks is associated with significant risk of capital loss. For more on Buyback Benefits and other issues please refer the earlier Posts.
Buyback of Shares: A Primer for Retail Investors
About Quick Heal Technologies
- Quick Heal Technologies Ltd. is one of the leading IT security solutions company.
- The solutions are well integrated systems that simplify IT security management across the length and depth of devices and on multiple platforms
- The company’s has focused on computer and network security solutions through continuous R&D.
- The current portfolio of company’s cloud-based security and advanced machine learning enabled solutions stop threats, attacks and malicious traffic before it strikes. This considerably reduces the system resource usage.
- The security solutions are indigenously developed in India.
- Quick Heal Antivirus Solutions, Quick Heal Scan Engine and the entire range of Quick Heal products are proprietary items of Quick Heal Technologies Ltd. .
Quick Heal Technologies : Price Trend, Summary of Financials
Financial Overview
| Market Cap in Rs. Cr | 1,445 |
| Revenue FY18 in cr | 316 |
| CMP in Rs. | 224.3 |
| Face Value | 10 |
| Price / Earning (PE) | 13.03 |
| Book Value | 218.4 |
| Price / BV | 1.03 |
| ROCE % | 17.86% |
| ROE % | 11.81% |
| Dividend Yield | 1.46% |
| Sales 3 yr CAGR | 3.64% |
| Debt / Equity Ratio | 0 |
Assessment: Quick Heal Technologies Buyback
- Quick Heal Technologies Buyback price has been reasonable and is at a good premium to existing market price. Compared to size of the company the Issue size is OK.
- Quick Heal is a small cap IT company and ranks at around 30th position among IT companies
- Quick Heal Technologies turned out improved performance in quarter ended Dec 2018.
- Quick Heal Technologies is virtually Debt free
- Considering the size of issue the company is likely yo go for a postal ballot to seek share holders approval and hence the total time period may amount to 3-4 months.
- If there are not many new arbitrage investors attracted to Quick Heal Technologies Buyback, the returns can be moderate. However being a small company even 10000-15000 new arbitrage investors can significantly reduce the acceptance in Buyback and impact the overall returns.
- Results of FY 19 are expected before the completion of Quick Heal Technologies buyback and will influence the possible returns.
- There may be considerable volatility due to elections and actions of US Govt policies as well. This should be borne in mind by investors.
- Quick Heal Technologies is not in F&O which may keep stock under pressure post buyback.
Standard disclaimer: I am not a SEBI registered analyst. I may have vested interest in every stock I discuss. Please do your own due diligence as stock market investments have high degree of inherent risk. Further the data in the post is prone to errors.