AGS Transact Technologies shares witnessed a flat listing on the exchanges on Monday. AGS Transact Technologies shares started trading at Rs 176 on the NSE, up 0.9 per cent as compared to its IPO issue price of Rs 175 apiece. On the BSE, the stock made its debut at Rs 176 per share. AGS Transact Technologies is an integrated omnichannel payment solutions provider providing customised products and services comprising ATM and cash-recycling machines outsourcing, cash management, and digital payment solutions including merchant solutions, transaction processing services, and mobile wallets.
The AGS Transact Technologies IPO, which was carried out through an offer for sale, received bids for 22.35 crore shares against an offer of 2.87 crore, translating into a subscription of 8.22 times, the company had said. The retail demand stood at 3.25 times, qualified institutional buyers 2.82 times, and the non-institutional category received 27 times subscription. It had earlier raised Rs 204 crore from anchor investors.
AGS Transact Technologies IPO: What do Analysts Say?
Santosh Meena, head of research, Swastika Investment Ltd., said: “The company is one of India’s leading Omni-channel payment solution providers with a strong network. However, the government’s focus on digital payments will further decrease the use and availability of cash can have an adverse effect on business activities.”
“The IPO got listed at Rs 175 which is the same as the issue price. We had an avoid rating to the IPO as the government focuses on digitalization. The investors who got the allotment are advised to book the profit and look for other investment opportunities,” Meena said.
Giving a buy tag to the AGS Transact Technologies shares; Ravi Singhal, vice chairman at GCL Securities said ahead of listing, “The issue was over-priced and there is nothing available for the investor as it is completely offer-for-sale. Considering high volatility and negative sentiment of the current market, I am expecting AGS Transact Technologies shares to list at somewhere around 5 per cent discount.”
On AGS Transact Technologies IPO listing price that one can expect; Ravi Singh, vice president and head of research at Share India said ahead of listing, “Being an integrated omni-channel payment and cash solutions provider, AGS Transact’s diversified product portfolio, customer base, and revenue stream has made it a good option to subscribe for long term gains. However, the current market scenario is not in a positive mode, which may affect the listing gains. We expect the listing may be at a discount somewhere in the range of Rs 160 to Rs 170 per equity share.”
Ashoka India Equity Investment Trust Plc, Kuber India Fund, Saint Capital Fund, IIFL Special Opportunities Fund, Abakkus Growth Fund, HDFC Mutual Fund (MF), Nippon India MF and Quant MF are among the anchor investors. As of March 31, 2021, the company 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.
The market cap of the firm stood at Rs 2,118 crore. Total 0.51 lakh shares of the firm changed hands amounting to a turnover of Rs 88.90 crore on BSE. On NSE, the stock listed at Rs 175. The market cap of the firm rose to Rs 2,161 crore. Total 47.47 lakh shares of the firm changed hands amounting to a turnover of Rs 87.14 crore on the NSE.
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