Quick Heal Technologies is one of the leading providers of security software products and solutions in India, an initial public offering (IPO) with total around 14.1 million shares (including 6.3 million OFS shares and 7.8-8.0 million fresh issue shares) in offering. Total IPO size is estimated at around Rs 4,450-4,512.7 million.

Choice Broking has recommended 'Subscribe' to IPO of Quick Heal Technologies. Commenting on the investment rationale, the stock broker said, ''Quick Heal does not have any domestic listed peers. After annualizing the net profit, FY16 EPS stands at Rs6.9 (post issue). At the lower price band of Rs311 per share, the company’s share is available at a P/E(x) of 44.9, while at higher price band of Rs321, it is available at P/E(x) of 46.4 of its FY16EPS, which is premium to its global peers such as Trend Micro, AVG Technologies, Symantec Corp and SAP SE.''

''Besides, expensive valuation, margins of the company is consistently declining and other ratios like working capital days and inventory days are also not presenting rosy picture. As per the RHP, around 99% of revenue generates from sales of traded goods, while there is no any corresponding purchase, arises some uncertainty over company’s business model. We assign 'Subscribe with Caution' rating to this issue,' it added.

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