An omnichannel payment solutions provider AGS Transact Tech saw a tepid debut on the bourses on 31 January 2022. AGS Transact Technologies stock price on the Bombay Stock Exchange was Rs. 176 against its issue price of Rs. 175 a share. This was only a 0.57% rise in price as compared to the upper band of its issue price.
Go through the following sections to know more about this topic.
A Glimpse at AGS Transact Tech IPO
AGS Transact Tech filed its DRHP with the market regulator on August 2021 to raise Rs. 680 crores via IPO route. As per its red herring prospectus, this public issue was an entire offer for sale by selling promoters and shareholders.
The public offer, which opened for subscription on 19 January 2022, garnered an okayish response from investors. The IPO was subscribed 7.70 times during 19 – 21 January 2022.
The most number of bids were placed by Non-Institutional Investors, who sought 15,73,82,940 shares against a total allotment of 61,44,578 equity shares. Their issue portion was subscribed 25.61 times. Meanwhile, the share portion of QIBs and RIIs were subscribed 2.68 times and 3.08 times, respectively.
This public offer was an entire offer for sale by its promoter Ravi B Goyal. As per an agreement made by Goyal and AGS, the company will receive those funds to lower its debt burden.
The AGS Transact price band for this public issue was Rs. 166 – Rs. 175 per share.
About AGS Transact Technologies
AGS Transact Tech is an integrated payment solutions provider in India. It is also the 2nd largest company in the country in terms of revenue. The company offers customised products and services consisting of CRM and ATM outsourcing, digital payment solutions, cash management, merchant solution and much more.
Apart from its operations in India, it serves a few international destinations, including Singapore, Cambodia, Sri Lanka, the Philippines and Indonesia.
The COVID-19 pandemic severely affected the business operations of AGS Transact Tech. As a result, its earnings fell in FY 2021. It reported a loss of around Rs. 18.1 crores upon the revenue of Rs. 753.4 crores during the 5-month period ending on 31 August 2021. During the same period, its revenue also fell from Rs. 1,800.44 crores to reach Rs. 1,758.94 crores.
However, as the pandemic restrictions ease and banks ramp up the deployment of ATMs, AGS will benefit from its diversified portfolio, multiple revenue sources and extended customer base.
Furthermore, AGS Transact Tech features a customer-centric portfolio with strong potential to develop customised in-house solutions.
Although AGS Transact’s share price is not so attractive, experts believe that its diversified service and product portfolio coupled with a solid customer base and revenue stream will drive the company towards more growth in the coming years.
Frequently Asked Questions
What is AGS Transact’s demand regarding its P/E multiple?
AGS Transact Tech demands a P/E multiple of around 38.5 times at its upper price band of Rs. 175.
How much profit did AGS Transact Tech record in FY 2021?
In FY 2021, AGS Transact Tech recorded a profit of Rs. 54.79 crores.
Where are the shares of AGS Transact Technologies listed?
The shares of AGS Transact Technologies feature listing on both BSE and NSE.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.
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