Omni-channel payment platform AGS Transact Technologies has made a flat debut on the stock market. Shares of the company listed at Rs. 176 on the BSE while the issue price was set at Rs. 175 a share. AGS Transact shares listed at the NSE at Rs. 175 per share.
Experts predicted a flat listing considering its higher valuation, weak financials, stiff competition from its peers and negative market sentiment.
Let’s find out more on this issue!
How Did AGS Transact Technologies IPO Perform?
AGS Transact Technologies IPO took place between 19 January and 22 January 2022. This offering was entirely an offer for sale with shares ranging between Rs. 166 to Rs. 175. The company had put up 2.87 crores shares on offer but received bids for 22.35 crores shares. This translated into an overall translation of 8.22 times.
The RII segment received bids 3.25 times, while the QIB and NII were subscribed 2.82 and 27 times, respectively. It has also raised Rs. 204 crores through a pre-IPO placement from its anchor investors. AGS Transact raised Rs. 680 crores through its initial stake sale.
What Are the Analysts Saying?
According to Santosh Meena of Swastika Investment Limited, the Government’s focus on digital payments can further reduce the use of cash. This can lead to an adverse impact on AGS Transact Technologies and its business. The company is, however, a significant omnichannel payment platform with a robust network.
He further adds that they provided an avoid rating to this IPO as the Government’s focus is more towards digitalisation right now. Investors who obtained their allotments should take the profit and explore other opportunities now.
Ravi Singhal from GCL Securities gave a buy tag to AGS Transact shares ahead of its listing. He expects shares to list around 5% discount given negative market sentiment and high volatility. He says that a vast customer base, diverse product portfolio, and solid revenue stream have made AGS Transact an excellent option for long term gains. However, the present market condition might impact its listing gains. The listing might take place with a discounted price that can range between Rs. 160 and Rs. 170 a share.
Know About the Company
Founded in December 2002, AGS Transact Technologies is one of the notable integrated payment solutions providers in the country. It is involved in offering both cash-based and digital payments solutions to corporate and banking clients.
It operates its business in several segments, including Banking Automation Solutions, Payment Solutions and Automation Solutions in retail and petroleum sectors and more.
Recent Financial Performance
The company registered a drop in its revenue from FY 19 to FY 21 due to the impact of the raging pandemic. Its profits also suffered a slump during the same period. AGS Transact posted a loss of Rs. 18.11 crores between April and August of 2021.
The higher end of AGS Transact IPO price band is at a PE ratio that is 38 times, which is higher than that of CMS Info Systems. Interestingly, it had reduced its public issue size from Rs. 800 crores to Rs. 680 crores.
Although the shares have been listed flat on the stock exchange, analysts feel that with the ease of pandemic restriction, increased ATM placements and exploration in the digital payments space, this company will perform well in the coming days.
For more information on the stock market, investment and finances, make sure to check out the Angel One blogs.
Frequently Asked Questions
Who were the anchor investors of the public issue of AGS Transact Technologies?
Some of the notable anchor investors of AGS Transact Technologies include Kuber India Fund, IIFL Special Opportunities Fund, HDFC Mutual Fund, Quant MF, Abbakus Growth Fund, and others.
How many shares changed hand on the BSE and NSE?
A total of 0.51 lakh shares have changed hands on the BSE, while 47.47 lakh shares were traded on the NSE.
What was the face value of AGS Transact Technologies IPO?
The face value of AGS Transact Technologies IPO stood at Rs. 10 per equity share.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.