Quick Heal Buyback 2022

Quick Heal Technologies Ltd. (Formerly Known as Quick Heal Technologies Pvt. Ltd.) is one of the leading IT security solutions companies. 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 Offer Amount: ₹ 150 Cr.
Date of Board Meeting approving the proposal: Jul 21 2022
Date of Public Announcement: Jul 21 2022
Buyback Offer Size: 8.6%
Buyback Number of Shares: 50,00,000
FV: 10
Buyback Price: ₹ 300 Per Equity Share

Details of Buyback:

Board of directors of the Company for the proposed buyback of up to 50,00,000 Equity Shares of ₹ 10/- each aggregating up to 8.6 % of the total paid up equity share capital of the Company, at ₹ 300/- per Equity Share of the Company (“Buyback”), on a proportionate basis through a tender offer pursuant the Companies Act, 2013 and the SEBI (Buy-back of Securities) Regulations, 2018 (“Buyback Regulations”).

Salient financial parameters:

Particulars(in Cr) Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Sales 298 299 316 313 283
Expenses 192 202 193 186 193
Operating Profit 107 97 123 127 91
OPM % 36% 33% 39% 41% 32%
Other Income 9 23 23 25 31
Interest 0 0 0 0 0
Depreciation 24 31 27 24 22
Profit before tax 93 90 119 129 100
Net Profit 62 59 79 84 74
EPS in Rs 8.91 8.44 11.21 11.9 11.47
Source: Screener.in

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Quick Heal Buyback 2022 in Demat or physical form as on the record date [To be updated]. 2. Once you have shares in demat, you can participate in the buyback process which is opening from [To be updated] by selling your shares through your broker on NSE or BSE. 3. Then on [To be updated], 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 666 Shares at CMP of Rs. 212 [2,00,000/300)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,41,192 1,41,192 1,41,192 1,41,192
No. of Shares buyback 220 333 500 666
BuyBack Profit 19,360 29,304 44,000 58,608
Profit (%) 13.7% 20.75% 31.16% 41.5%


    Arbitrage opportunity is at about 40% but results not looking so impressive….Should we go for this buyback?

      Yes Result was not good so buy around Rs. 200 Level. and accumulate at every Rs 10-15 dip. AR for Retail category would be around 15-20%

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