What you need to know about the Quicktouch Technologies IPO

About the Quicktouch Technologies IPO
About the Quicktouch Technologies IPO

by 5paisa Research Team Last Updated: Apr 17, 2023 - 05:04 pm 1.7k Views
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Quicktouch Technologies Ltd, is an SME IPO on the NSE which is opening for subscription on 18th March 2023. The company, Quicktouch Technologies Ltd, was incorporated in the year 2013 as an IT company. It focuses on providing Software IT Solution and Consulting Services, as well as software training modules and website development services for businesses. It provides a lot of services on the high-end design side, including Website Designing and Redesigning, iOS App, Android apps, Digital Marketing and Web Hosting Services and other related cloud services.

Quicktouch Technologies Ltd is also engaged in the business of Enterprise Resource Planning (ERP). As a business facilitator, the company helps businesses to perform and excel in their operations by benchmarking against best practices. It also allows their clients to leverage their industry-wide experience, deep technology expertise and their diversified product and solutions stack for fine tuning their answers. The company intends to position as an end to end service provider for business in the IT and software domain. The company will use the fresh funds for working capital needs and for inorganic expansion of business.

Key terms of the SME IPO of Quicktouch Technologies Ltd

Here are some of the highlights of the Quicktouch Technologies Ltd IPO on the SME segment of the National Stock Exchange (NSE).

  • The issue opens for subscription on 18th April 2023 and closes for subscription on 21st April 2023; both days inclusive.
     

  • The company has a face value of Rs10 per share and the issue price for the fresh issue portion has a fixed price of Rs61 per share. That is a premium of Rs51 on face value.
     

  • The company plans to issue a total of 15.30 lakh shares at the price of Rs61 per share aggregating to a total fund raising of Rs9.33 crore.
     

  • The company has allocated 50% of the issue size for the retail investor while the balance 50% is allocated to HNI / NII investors.
     

  • The minimum lot size for the IPO investment will be 2,000 shares. Thus, retail investors can invest a minimum of Rs122,000 (2,000 x Rs61 per share) in the IPO. That is also the maximum that the retail investors can invest in the IPO.
     

  • HNI / NII investors can invest a minimum of 2 lots comprising of 4,000 shares and having a minimum lot value of Rs244,000. There is no upper limit on what the HNI / NII investors can apply for; as is captured in the table below.

    Application

    Lots

    Shares

    Amount

    Retail (Min)

    1

    2000

    122,000

    Retail (Max)

    1

    2000

    122,000

    HNI (Min)

    2

    4,000

    244,000

  • Like every SME IPO, this issue also has a marketing making portion with a market maker portion allocation of 78,000 shares. Share India Securities Limited will act as the market maker to the issue providing two-way quotes to ensure liquidity on the counter.
     

  • The company has been promoted by Gaurav Jindal and Madhu Jindal and the promoter stake in the company stands currently at 89.41%. Post the IPO, being a fresh issue of shares, the promoter stake will be get diluted proportionately to 65.72% of capital.

While Share India Capital Services and Khambatta Securities Ltd will be the lead managers to the issue, Skyline Financial Services Private Limited will be the registrar to the issue.

Key dates to be aware of in the Quicktouch Technologies Ltd IPO (SME)

The SME IPO of Quicktouch Technologies Ltd IPO opens on Tuesday, April 18th, 2023 and closes on Friday April 21st, 2023. The Quicktouch Technologies Ltd IPO bid date is from April 18th, 2023 10.00 AM to April 21st, 2023 5.00 PM. The Cut-off time for UPI Mandate confirmation is 5 PM on the issue closing day; which is the 21st of April 2023.

Event

Tentative Date

IPO Opening Date

April 18th, 2023

IPO Closing Date

April 21st, 2023

Finalization of Basis of Allotment

April 26th, 2023

Initiation of Refunds to non-allottees

April 27th, 2023

Credit of Shares to Demat account of eligible investors

April 28th, 2023

Date of listing on the NSE-SME IPO segment

May 02nd, 2023

It must be noted that in ASBA applications, there is no refund concept. The total application amount is blocked under the ASBA (applications supported by blocked amounts) system. Once the allotment is finalized, only the amount is debited to the extent of the allotment made and the lien on the balance amount is automatically released in the bank account.

 

Financial highlights of Quicktouch Technologies Ltd

The table below captures the key financials of Quicktouch Technologies Ltd for the last 3 completed financial years.

Details

FY22

FY21

FY20

Total Revenues

Rs25.53 cr

Rs7.28 cr

Rs2.66 cr

Revenue growth

251%

174%

-

Profit after tax (PAT)

Rs2.21 cr

Rs0.53 cr

Rs0.23 cr

Net Worth

Rs4.15 cr

Rs1.93 cr

Rs1.41 cr

Data Source: Company DRHP filed with SEBI

The profit margins have been fairly stable at around 10% despite the frenetic growth in the top line revenues. However, the company has an established model with a sort of matured market. However, investors must remember that this is a business vertical that has a lot of competition from the unorganized segment and that could be a big risk factor going ahead. This is suited to investors with a higher level of risk appetite.

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