Quicktouch Tech Multibagger Alert: 3.2 Lakh Warrants Converted, Shares Surge as Investor Interest Peaks

On Friday, Quicktouch Technologies, an IT services company listed on the SME platform, caught attention after its board approved the conversion of 3.2 lakh warrants into equity shares. This move has reignited interest in the stock, which has provided huge returns since its IPO last year, despite some recent dips.

On Thursday, 12th September 2024, the company’s board announced the approval of 3,20,000 equity shares, following the conversion of 3,20,000 warrants. These shares were issued at ₹196.17 per share, which included a premium of ₹186.17, under the non-promoter/public category on a preferential basis. The company received ₹4.70 crore from this conversion, with 75 per cent of the issue price, or ₹147.128 per warrant, paid.

Stock Performance and Growth Since IPO

On Friday, shares of Quicktouch Technologies rose by 1 per cent, trading at ₹160.20. Around 40 lakh shares were traded, showing strong investor interest after the warrant conversion. The stock remains in the spotlight as investors consider the effect of the increased equity and future growth.

Quicktouch Technologies, which was listed in May 2023 on NSE’s SME platform, has grown over 162 per cent from its IPO price of ₹61 to trade around ₹160. The IPO raised ₹9.33 crore and was in high demand when it opened for subscription in April 2023. Despite this strong performance, the stock has seen some challenges, dropping over 19 per cent in the last year and in 2024 year-to-date.

However, the stock has shown signs of recovery in recent months. In September, it gained over 4 per cent, continuing its positive trend for four months in a row. The stock rose 5 per cent in August, 21 per cent in July, and 2 per cent in June, after a sharp 38 per cent drop in May. Earlier in the year, the stock saw declines in February and March, but gained 10 per cent in January.

Details of Warrant Conversion

In a regulatory filing, Quicktouch Technologies confirmed the conversion of warrants into shares for non-promoters and public investors. These warrants were issued under SEBI’s 2018 regulations and initially required a 25 per cent payment, or ₹49.042 per warrant. The remaining 75 per cent, or ₹147.128 per warrant, was paid upon conversion, giving the holders equal equity shares.

As a result, the company’s total capital increased to ₹6.64 crore, with 66,43,796 equity shares now in circulation. The new shares will have the same rights as the company’s existing shares.

Quicktouch Technologies has delivered strong returns since its IPO, but its stock has experienced ups and downs. This recent warrant conversion is an important step for the company, helping to strengthen its capital structure. As the stock shows signs of recovery, investors are watching closely to see how it performs in the competitive IT services market.