Sequoia-backed Quick Heal's IPO subscribed 77.5% by day 2

The initial public offering of Sequoia Capital-backed antivirus software maker Quick Heal Technologies Ltd was covered 77.5 per cent at the end of the second day on Tuesday, stock-exchange data showed.

The IPO subscription was led by retail investors, who bid for 1.38 times their quota. Qualified institutional buyers have applied for around 26.83 per cent of the shares reserved for them, but non-institutional investors have largely stayed away for now as their portion was covered just 9.3 per cent at the end of second day. On day one, the issue was covered just 15.01 per cent, led by retail investors.

Earlier, the company raised Rs 134 crore (about $19.7 million) from anchor investors including BNP Paribas Advantage and Reliance Mutual Fund.

The issue, which opened for subscription on Monday in a price band of Rs 311-321, will close on Wednesday.

The company aims to raise up to Rs 250 crore (about $38 million) through a fresh issue of shares. In addition, there is an offer for sale of up to 6.8 million shares by promoters and Sequoia Capital.

At the upper end of the price band, the issue would be worth Rs 468 crore ($68.8 million).

While bulk of the money from the offer for sale would go to the promoters, Sequoia will take out around Rs 87.8 crore in the issue. It had invested Rs 36 crore in Quick Heal in 2010 and separately also bought shares worth Rs 24 crore from the firm's promoters.

The VC firm owns a 10.25 per cent stake in the company and is selling less than half of it. It would almost triple its investment, as per VCCircle estimates.

For more info about the IPO, click here and here.