AGS Transact Technologies IPO: Issue Subscribed 7.79 Times on Closing Day

26 August 2022
3 mins read
AGS Transact Technologies IPO: Issue Subscribed 7.79 Times on Closing Day

On the third and final day of AGS Transact Technologies IPO, the issue saw a subscription of 7.79 times. The payment solutions provider firm received bids for 22,34,74,265 shares out of an overall reservation of 2,86,74,696 equity shares.

Being one of the country’s leading omnichannel payment solutions providers, AGS Transact Tech is the 2nd largest Indian firm regarding revenue. The company typically operates through three segments: banking automation solutions, payment solutions, and other automation solutions.

The company filed its draft papers with SEBI in August 2021 to generate Rs. 680 crores via an initial share sale. As per the prospectus, its IPO is entirely OFS by its current promoters and shareholders.

Earlier this week, it fixed the price band for the share sale at Rs. 166 to Rs. 175 per share.

Keep reading to know how this IPO performed on day 3 of its bidding day across various segments of investors.

Final Verdict of AGS Transact Technologies Day 3 Performance

Here is how the public issue of AGS Transact Tech performed for different categories of investors on 21 January 2022.

  • QIBs (Qualified Institutional Buyers) put in bids for 2,19,42,750 shares, out of the 81,92,770 reserved shares.
  • NIIs (Non-Institutional Investors) sought 15,73,82,940 shares against an overall share allotment of 61,44,578.
  • RIIs (Retail Individual Investors) submitted bids for 4,41,48,575 shares, where 1,43,37,348 shares were kept for them in total.

Go through the tabular representation to know how many times each category of investors placed bids for this public issue.

QIB NII RII Total
2.68 Times 25.61 Times 3.08 Times 7.79 Times

Overall, the company offered shares worth Rs. 143.37 crores to Qualified Institutional Buyers and Rs. 107.53 crores for Non-Institutional Investors. Meanwhile, Retail Individual Investors feature a share allotment amount to Rs. 250.90 crores.

A Glimpse at AGS Transact Technologies Anchor Investment

AGS Transact Technology managed to mop up Rs. 204 crores on 18 January 2022 through a round of anchor investment. In its BSE filing, the company mentioned an allotment of 1,16,57,141 shares to anchor investors. It fixed the price of these at Rs. 175 a share.

In total, 17 anchor investors participated in this anchor book, including:

Marquee Investors

  • BNP Paribas Arbitrage – ODI
  • Kuber India Fund
  • Ashoka India Equity Investment Trust Plc
  • Saint Capital Fund
  • Cohesion MK Best Ideas
  • Tara Emerging Asia Liquid Fund
  • Authum Investment and Infrastructure

Domestic Investors

  • HDFC Balanced Advantage Fund
  • IIFL Special Opportunities Fund
  • Nippon India Small Cap Fund
  • Abakkus Growth Fund
  • Resonance Opportunities Fund
  • Quant Mutual Fund

Further, the primary objectives of this public issue are:

  • To perform OFS by promoters and shareholders, and
  • Reap the benefits of stock exchange listing

Day 1 and Day 2 Performance of AGS Transact Technologies

The below table represents the subscription status of AGS Transact Tech on the initial two days of its public issue.

Bidding Day QIB NII RII Total
Day 1 0.00 Times 1.02 Times 1.32 Times 0.88 Times
Day 2 0.49 Times 1.13 Times 2.06 Times 1.42 Times

Bottom Line

AGS Transact Tech received a tepid response from different investor segments in the initial two days. However, its long-standing relationship with some big global names and solid technological capabilities may fuel its market performance in the coming times.

Source – NSE

Frequently Asked Questions

  1. Who is the registrar of AGS Transact Tech IPO? The registrar of this IPO is Link Intime India Private Ltd.
  2. Who are the book running lead managers to this IPO? Entities like ICICI Securities Limited, JM Financial Consultants Private Limited and HDFC Bank Limited will manage this IPO.
  3. When will this IPO list on the bourses? AGS Transact Tech’s listing date is 1 February 2022.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.