AGS Transact Tech IPO fully subscribed on second day of the issue. GMP, key details here
Premium- AGS Transact Technologies IPO received 88% subscription on day 1 of its public offer that opened on Wednesday
The initial public offering (IPO) of payment solutions provider AGS Transact Technologies has been fully subscribed on the second day of the issue so far. The price range for the three-day share sale, that opened on January 19, is fixed at ₹166-175 per share.
As of 10:20 am on day 2 on Thursday, AGS Transact Tech IPO has been oversubscribed by retail investors and Non Institutional Investors (NIIs) at 1.55 times and 1.02 respectively, BSE data showed.
The IPO, which is the first in the new year 2022, is purely an offer-for-sale (OFS) of equity shares worth ₹680 crore by a promoter and other selling shareholders.
As per market observers, AGS Transact Tech shares premium (GMP) has slipped to ₹8 in the grey market today. The company's shares are expected to list on stock exchanges BSE and NSE on February 1, 2022.
Assigning Subscribe rating to the IPO, brokerage house Emkay said that, “We believe AGS provides an opportunity to invest in a cash-cum-digital play from a long-term perspective. At the higher price band of Rs175, the stock is valued similar to its peers like CMS Info Systems."
Though, the brokerage sees Loss of ATM business mandate with large bank, Covid-led business disruption and delay in the scale-up of digital payment business as key risks.
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.
As of March 31, 2021, AGS was the second largest company in India in terms of revenue from ATM managed services under the outsourcing model, and revenue from cash management and number of ATMs replenished, highlighted Axis Securities in a note.
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For the financial year 2021, the company's total income was ₹1,797 crore, and the profit before tax was ₹82 crore. The EBITDA was at ₹476 crore and the margin stood at 26.5%.
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