PRE- AND POST-IPO FINANCIAL PERFORMANCE OF A VENTURE CAPITAL-BACKED QHTL, MAHARASHTRA
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PRE- AND POST-IPO FINANCIAL PERFORMANCE OF A
VENTURE CAPITAL-BACKED QHTL, MAHARASHTRA
Authors:
- Addanki Anil Kumar, 2. Mamilla Rajasekhar
ABSTRACT: The implications of stock exchange listing have been widely examined, often yielding mixed conclusions about its impact on corporate financial performance. This study analyses the financial effects of listing on Quick Heal Technologies Limited (QHTL), Pune, Maharashtra. This venture capital-backed cybersecurity firm launched its Initial Public Offering (IPO) and was listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on February 18, 2016. The primary objective is to assess and compare the company’s pre- and post-listing financial performance to understand how public listing influences key financial metrics. The study is based exclusively on secondary data, collected from the company’s audited annual reports and financial portals over a 10-year period, covering five years each before and after its listing (FY 2011-12 to 2020-21). The analysis centers on core financial indicators such as profitability, liquidity, solvency, operational efficiency, and asset utilization capacity. A paired-sample t-test was used to test the significance of the differences in mean values between the pre- and post-listing periods. The findings reveal that while profitability metrics such as ROE, ROCE, NPM, and OPM exhibited slight variations, none were statistically significant. Liquidity indicators (CR and QR) declined modestly, but again without statistical significance. The company remained debt-free throughout, indicating stable solvency. However, a statistically significant increase in the Total Asset Turnover Ratio (TATR) was observed post-listing, suggesting improved operational efficiency in asset utilization. For venture capital-backed firms like Quick Heal, listing serves as a strategic move toward long-term scalability and credibility rather than a guaranteed driver of enhanced financial performance.
Key words: Venture Capital Financing, IPO listing, Profitability, liquidity, solvency, Operational efficiency, and Asset utilization.
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