The three-day initial public offering (IPO) of payment solutions provider AGS Transact Technologies will open for subscription this week on Wednesday, January 19. The price band of the three day initial share-sale has been fixed at ₹166-175 a share. The bidding for anchor investors will open on January 18 and the issue will conclude on Friday, January 21.
The public issue, which will be the first in the new year 2022, is purely an offer-for-sale (OFS) of equity shares by a promoter and other selling shareholders. The company has cut the size of its public issue to ₹680 crore, from ₹800 crore as planned earlier.
As per market observers, AGS Transact Tech shares are commanding a premium (GMP) of ₹18 in the grey market today. The company’s shares are expected to list on stock exchanges BSE and NSE on February 1, 2022.
“The pandemic has impacted the business due to slowdown in economic activities resulting in lack of growth in top as well as bottom line of the company. The issue is priced at a PE multiple of 38x based on FY21 earnings and has incurred a loss of around Rs. 18 crores in 5MFY22. Owing to this factors, the IPO may get a moderate response. However, the revenues from digital solutions will be a key thing to watch for going ahead” said Abhay Doshi, founder of Unlisted Arena.
AGS Transact Tech is an integrated omni-channel payment solutions provider in India in terms of providing digital and cash-based solutions to banks and corporates.
It provides customised products and services comprising ATM and Cash Recycler Machines (CRM) outsourcing, cash management and digital payment solutions including merchant solutions, transaction processing services and mobile wallets.
ICICI Securities, HDFC Bank and JM Financial are the lead managers to the issue. Link Intime India Private Ltd is the registrar of the IPO.
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