IT security solutions firm, Quick Heal Technologies Limited is reportedly planning to bring its initial public offering (IPO). The Pune-based firm intends to raise around INR1,000-1,200 crore for expansion purpose. The IPO is expected to bring the long wait of software company listings in India to an end. Last pure-play IT company to list in India was iFlex Solutions in 2002. Quick Heal had planned the much-awaited IPO in mid-2014. JPMorgan is included as underwriter for the issue while ICICI Securities and Jefferies are names as lead managers.
The proceeds of the IPO shall be routed for broadening its operations to Europe and the United States in the upcoming 12-18 months. Company valuation is expected to be nearby INR4,000 crore. Sequoia Capital aims for partial exit from the company with the IPO. It had invested INR60 crore in 2010 and is expected to make about 6.5 times in return.
Read Also: Coffee Day IPO expected in October
Founded in 1993 as CAT Computer Services, Quick Heal has come a long way with more than 17million active customers and added 25000 small, medium and large enterprises installations. It currently has operations in countries like Africa, Japan and the United Arab Emirates. Quick Heal has 33 branch offices in India and engages the services of more than 1,200 personnel.
Quick Heal Technologies has maintained its growth by posting 46% jump in revenues in the last three years, posting a top line of INR360 crore for FY2013/14. Nearly 70% of its revenues come from retail customers while the remaining 30% is contributed by corporate. Quick Heal also boasts of partnership with Microsoft and Intel.
Read Also: Everstone-backed VLCC files IPO prospectus
Founder Kailash Katkar commenced the business with a computer repair shop with a paltry sum of INR15,000 along with his brother Sanjay Katkar. They gradually moved towards specializing computer needs and developed Quick-Heal anti-virus. IT boom paved way for virus and malware threats in the virtual world and in 1993, the duo bagged their first important deal with New India Assurance.
Quick Heal firmly made its place in the IT market with mainstream names like Norton and McAfee owing to its low price. Apollo Hospitals and Just Dial are among its many enterprise customers. Earlier this year, the firm started offering its products to buyers in the US and Canada.