IPO of AGS Transact Technologies: The first share sale of the first IPO of the year ended a day ago and received a strong response from bidders at the close. The IPO of AGS Transact Technologies was tendered 8.22 times on Day 3 of the bidding and the offer closed, according to data available on the Bombay Stock Exchange, or BSE, website. The public offer came after a month-long hiatus in the primary market, following a year of blockbuster issues in Dalal Street, with several companies making records through them. It was the first IPO of this year.
AGS Transact Technologies Limited’s public offer opened on January 19 and closed on January 22. During these three days of bidding, investors posted about 25.57 crore shares of the company against an issue size of more than 2.86 crore (2.86.74,696) shares, according to BSE data.
The strong response to the IPO of AGS Transact Technologies was largely supported by non-institutional investors, who subscribed to 27 times of their reserved share. On the other hand, private buyers bid for 3.25 times of the shares reserved for them, while qualified institutional buyers bid for 2.82 times of their reserved share.
The base of the allotment process will take place on January 27, while bidders who are selected will receive their credit on defrosted accounts on January 31. Ineligible bidders will be refunded on January 28. The issue can be reported on BSE and NSE on February 1, which is about two weeks later.
The company plans to raise Rs 680 crore through the issuance, of which Rs 204 crore has already been raised through anchor investments. The entire issue only had an offer for sale, or OFS portion, and thus the company will not receive any proceeds from the IPO offering.
The offer had a price range of Rs 166 to Rs 175 per share.
The unlisted shares of AGS Transact Technologies sold on Friday, January 21 at Rs 190, at a premium of Rs 15 at the upper end of its price range, according to ipowatch.com. The data for Saturday was not available at the time of writing this article.
AGS and the promoter selling shareholder have entered into an agreement under which the selling shareholders will purchase net proceeds from the OFS of the mandatorily convertible preference shares (of promoter corporate) held by AGS. This in turn will be used to redeem the outstanding NCDs issued. Indirectly, the funds come in to the company, which will be used to reduce the debt burden.
AGS Transact Technologies Limited is an integrated omni-channel payment solutions provider operating in India. The company operates in three business segments, namely Payment Solutions, Banking Automation Solutions and Other Automation Solutions. According to the RHP, AGS is the only cash management company to have followed Ministry of Home Affairs guidelines on a pan-Indian basis.
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