Quick Heal Buyback 2019

Quick Heal Technologies Ltd. (Formerly Known as Quick Heal Technologies Pvt. Ltd.) is one of the leading IT security solutions company. Each Quick Heal product is designed to simplify IT security management across the length and depth of devices and on multiple platforms. They are customized to suit consumers, small businesses, Government establishments, and corporate houses.

Over a span of over 20 years, the company’s R&D has focused on computer and network security solutions. The current portfolio of cloud-based security and advanced machine learning enabled solutions to stop threats, attacks, and malicious traffic before it strikes. This considerably reduces 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. (Formerly Known as Quick Heal Technologies Pvt. Ltd.)

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Apr 26 2019
Buyback Opening Date: May 20 2019
Buyback Closing Date: May 31 2019
Buyback Offer Amount: ₹ 175 Cr
Date of Board Meeting approving the proposal: Mar 05 2019
Date of Public Announcement: Mar 05 2019
Buyback Offer Size: 9.02%
Buyback Number of Shares: 63,63,636
Price Type: Tender Offer
FV: 10
Buyback Price: ₹ 275 Per Equity Share

Details of Buyback:

The Board of Directors of the Company at its meeting held today, March 5, 2019, has approved a proposal to buy back 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 Cr, at a price of Rs. 275  per Equity Share through " Tender Route".

Salient financial parameters:

Year Revenue(cr) Expense(cr) PAT(cr) PAT% EPS
2016 343 250 62 18.1% 10
2017 326 232 59 18.1% 8
2018 346 219 78 22.5% 11
9MFY19 227 154 60 26.4% 8
IZ Review 1. The Company's EPS for the first 9MFY19 is close to Rs.8 per shares. If we annualize it, then it will come out at 10.67. 2. The P/E ratio based on CMP of 218 stands at 20.43( Reasonable). 3. The company is Debt free. 4. The Company has close to 666 Cr reserves as on 31.03.2018 on Balance Sheet. Accordingly, the size of buyback won't be more than 100 Cr.

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Quick Heal Buyback 2019 in demat or physical form as on the record date [26.04.2019]. 2. Once you have shares in demat, you can participate in the buyback process which is opening from [ 20.05.2019 to 31.05.2019 ] by selling your shares through your broker on NSE or BSE. 3. Then on [Not Announced Yet], the payment will be given to you for accepted shares and unaccepted shares will be returned to your demat account.

Profit from the buyback on the bases of acceptance Ratio:

Buy 727 Shares at CMP of Rs. 224 [2,00,000/275=727)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,62,909 1,62,909 1,62,909 1,62,909
No. of Shares buyback 240 363 545 727
BuyBack Profit 12,240 18,513 27,795 37,077
Profit 7.5% 11.36% 17.06% 22.7%

Recommendation:

Review and Recommendation of Quick Heal Buyback 2019 by IZ team is: 4/10 Fair: 1-5 Good: 5-7 Excellent: 7-10 [ Arbitrage of 22% is available from the Current Market Price of 224 which is quite good. The Valuation of share is also reasonable. Yesterday, we have seen a very good moment in Mid-cap and Small-cap shares and this should continue in this month as well. The FIIs are buying heavily from the market. So AR should be more than 40%.]

Company Contact Details:

Marvel Edge, Office No.7010 C & D, 7th Floor, Viman Nagar, Pune 411014, Maharashtra, IndiaPhone: +91 20 66813232 Official Website: http://www.quickheal.com/ Email: info@quickheal.com

    For me AR is only 20.66%.How?As per offer letter I hold 150 shares on record date and entitlement of 24. I sold all the shares 2 days after record date. Later bought 70 shares and tendered all of them. Only 31 accepted

    Scenario-II( Buy when company Fixes Record Date for Buy Back and sell on Ex-date. Then wait for minimum entitlement to be announced in Letter of an offer to buy that many shares and tender them)

    1. On 16.04.2019 the company Fixes 26.04.2019 as Record Date for Buy Back of Equity Shares.

    2. Shares price on 17.04.2019( next day when you buy from the market) was Rs. 222.

    3. 727 Shares bought on 17.04.2019 means an investment of 1,61,454.

    4. Sell all 727 shares on 25.04.2019(Ex.date). The share price was 223. It fell from 239 to 223. Please see the price graph below. That means a profit of 727*(223-222)=727.
    https://d2un9pqbzgw43g.cloudfront.net/main/quick-heal.png

    5. Now 06.05.2019 company has informed to exchanges regarding dates of buyback opening and have said to dispatch letter of offer on or before 13.05.2019. The minimum Entitlement was 16.52%. So you must have bought 116 shares on 14.05.2019 at Rs. 185 and tender all shares thereby getting a profit of 116*(275-185)= 10,440.

      Hi,
      Have you tried the scenario 2. I am seeing this for the first time so asking.

      Thanks,
      Vishal

        Yes, i have tried same in FDC. Bought shares around 196 and sell on ex-date at 184. Now waiting for Letter of offer to know the entitlement. Then will buy accordingly and participate in the buyback.

      Why to buy on 14.05

      You can buy any day between start to end which is 20 to 31

        Yes, you can buy Venkat Jii, I am taking a 14.05.2019 as the date of reference when all Shareholders must have known their entitlement. So from here onwards, the buyer may come and the price will go up. Therefore, it is advised to buy as soon as you come to know about minimum entitlement.

          Excellent

          Is there any place where we can get the updates about all good / profitable Corp actions like buyback , divided..

          Or any WhatsApp group.

          I have few ideas, other also might have few.
          So that we can share our thoughts.

          For eg, Buy Wipro put, sell Wipro call, go long on equity for Wipro buyback.
          To get No loss

            Venkat Bro we create a page for every buyback and in the comments section, we can discuss our views and strategies.

      is this possible with Zerodha account as we under stand that it sucks the shares on same day from account,in this case no shares available on record date

    Final Analysis of Quick Heal Technologies 2019

    Scenario-I( buy on date of announcement and sell unaccepted shares on settlement date )

    1. Buyback Announcement date: 05.03.2019—– Share Price was 224.

    2. 727 Shares bought at Rs. 224 means an investment of 1,62,848.

    3. Retail Acceptance Ratio is 28.6%. i.e. out of 727 shares, 207 shares have been buyback by the company. Profit on Accepted Shares=10557

    4. The final Accepted Shares were taken back on 11.06.2019. Share price on 11.06.2019 is 177. So loss on unaccepted shares is 520*47= 24,440

    5. Overall we can say a loss of 13883.

    Approx final AR? When will shares be returned back? Price has dropped to 185. Sh uld we hold for getting price back to 220 or sell at 185 when shares are returned?

    No. of Equity Shares held by me on Record Date being April 26, 2019
    500

    Entitlement for Buyback Offer in terms of no. of Equity Share
    82

    Now is I have only 300 share in my demate.
    If I tender only 300 than how many share accepted by quick heal.

    If I buy another 200 share today and tender 500 share than how many accepted.

    Please reply Market Wizard sir.

      82 share confirm they buyback. u can tender 300 or 500 share but rest of the acceptance not guaranteed. My suggestion is current market price is low. u can buy 200 and hold until buyback close and dividend paid. sell whatever left around 220/share after that.

    why not update of quick heal buy back date it is open on 20th may 2019 &closed 31 may 2019

      Done brother. Some technical issues were there on the website.

    Hi,
    I didn’t get a mail regarding my entitlement. I bought the shares on 22nd April. What should I infer from this? Am I not eligible for the buyback?

      Nothing is wrong. It is just that buybacks are too crowded. The more the people buy for buyback arbitrage the lesser it becomes attractive for all others. estimates are just estimates actuals will always surprise anyone because no one can predict future.

    Entitlement:

    1. Retail 20 out of every 121 Shares ( 16.5%)

    2. General 45 Equity Shares for every 539 Shares. (8.34%)

    Buyback will open on 20th -31st May19. We will come to know acceptance ratio by 13may19. Very fast process!!

    What should I do now
    Rte has crashed below 200
    Should I keep it or sell half of it

      Aashish don’t sell now. Already oversold from 240 to 198 in 4 days (18% approx). I sold 50% @ 226. Holding remaining for tendering. Quarterly Result will be declared soon. Sell around 220 to 225 if you bought for buyback purpose only. there may be euphoria before result

    The price was crashed due to selling pressure before the record date.

      As 5 to 10% correction could be expected in case of hung government, it makes sense be cautious by selling. In fact, price crash indicates that large number of investors have done so to handle unwarranted post buyback uncertainty.

    Hello everyone, Today is the last day to buy. Any recommendations? Can this crash (like Mote Carlo)

      as per mw earlier
      Company is good fundamentally
      And we could participate
      I will read some more reviews and then update

    Just wait for the announcement from Company.

    Any news or updates regarding bb. Why all members are silent. Your views my dear MW.

      Mindtree buyback decision adjourned till any future date

      I would suggest not to burn fingers in this
      Very rrisky work cultures totally different
      Could destroy shareholders value
      There will be additional risk of buyback not happening as postal ballot is very time consuming process and approval of 66% is required

      Also there is no guarantee that l&t will accept all the shares tendered in open offer
      Currently there is not much upside left barely 3 %

      I don’t think that is worth the risk

    Does anyone know when will quickheal announce buyback? Also, is it worth investing given current price and will the price fall drastically after the buyback?

    Rec and nalco declared divinded..but no diffrence between future price and market price..can anyone tell why no diffrence?
    Future price have to be low till record date is 12th march…

      Since corporate action is more than 5℅ of closing price of day of announcement, all open position in futures and options will be adjusted with the amount of Corporate Action. Cash and future diff only in case when there is no adjustment in future and option

    ioc and nalco declared divinded..but no diffrence between future price and market price..can anyone tell why no diffrence?

    Name: – Quick Heal Technologies Ltd Buy-Back Details
    Record Date: – –
    Opening Date:- –
    Closing Date:- –
    Buyback Amount:- ₹ 175 Cr
    Buyback Number of Share:- 63,63,636
    Buy-Back Price:- ₹ 275
    Current Market Price: ₹ 224
    Max Shares to Invest: 727 Shares
    Profit per share = ₹ 275 – ₹ 224 = ₹ 51 / Per share

    Now see Acceptance Ratio Analysis

    If Acceptance Ratio 33%
    Amount Invested (727 x 224) = ₹ 1,62,848
    No of share Buy-Back = 240
    Buy-Back Profit = ₹ 12235

    If Acceptance Ratio 50%
    Amount Invested (727 x 224) = ₹ 1,62,848
    No of share Buy-Back = 364
    Buy-Back Profit = ₹ 18538

    If Acceptance Ratio 75%
    Amount Invested (727 x 224) = ₹ 1,62,848
    No of share Buy-Back = 545
    Buy-Back Profit = ₹ 27807

    If Acceptance Ratio 100%
    Amount Invested (727 x 224) = ₹ 1,62,848
    No of share Buy-Back = 727
    Buy-Back Profit = ₹ 37077

    Holding Period may be from 2 to 3 Months
    Subject to Selling the rest stocks which was not accepted in Buyback selling at Cost price.

    consult your financial advisor before making any investment decisions

    I had very bad experience with Alembic, so I will not try to invest in small companies for buyback purpose.

    Dear MW, although small but effective pls add Mazda Ltd also bb@550 CMP 370.

      But, I hope its an open offer and not Tender route…..
      Mr. Wizard any comments on this?

    will the company take shareholders approval? if they wait to take approval, record date will be far-off, otherwise record date will be near.

      Yes, Shareholder Approval is required.
      In case the buyback size (% of Paid-Up Equity and Free -reserves ) is less than 10% then no approval of Shareholder is required.

      In Quick heal the Paid-Up Equity and free Reserves is close to 750 Cr and Buyback size is 175 Cr. So it is close to 23% size. Hence shareholder approval is required.

      P.S. The Buyback size can’t be more than 25% of Paid-Up Equity and free Reserve

    Total Shares Reserved for Retailers= 9,54,545
    Shares up to 2 lakh = 76,22,597
    So Entitlement would be= 12.5%

    As per Annual Report 2017-18, the total number of Shareholders holding shares between 1-5000 are 34,06,389 Shares.
    So Entitlement would be = 28%

    Final AR may be above 40%.

      1-5000 share is 34 lakhs but for retail category it should be below 800 shares..so in retail er will be high and ar will be 100%.

    Total buyback ————- 6363636 shares (9.02% of the total paid up equity share capital)
    Reserved for retail ——- 954545
    Total buyback amount — Rs. 175 Crore
    Buyback price ————– 275
    Route ————————– Tender offer

    Quickheal Buyback

    Quickheal current price 225

    Buyback price 275

    Tender Route

    Dear MW,

    Kindly put some light on Mazda Ltd buyback meeting on 6.03.19…thanks

      Dear MW,

      If after announcement do you see an upside on the shares on account of buyback.
      any idea of the offer price ?

      Total Reserves as on 31.03.2018 = 120 Cr.

      The buyback size won’t be more than 30-40 Cr.

      If we consider the buyback price in the range of 350-400, then no.of shares the company will be buyback won’t be more than 10 lakh.

      Accordingly, the retail quota would not be more than 2 lakh.

      As per Shareholding quota as on 31.12.2018, the Individual share capital up to Rs. 2 Lacs is 11,67,130 so Entitlement won’t be more than 20%.

      Please avoid buyback which is less than 100 Cr.