IPO of AGS Transact Technologies: The first IPO, or IPO, of 2022 will close on Friday, January 21. The AGS Transact Technologies IPO, which opened two days ago, attracted 1.42 subscriptions from day 2 of its opening, mainly driven by the retail buyers category. 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. Bidders have the last chance to book this number on Friday. Right now, more than 30 companies are already lining up to open their IPOs, trying to keep up with the trend.
What AGS Transact Technologies IPO GMP Indicates
According to iPOWatch, the unlisted shares of AGS Transact Technologies traded at a premium of Rs 15 in the gray market. This was about 8.5 percent higher than the top end of the price range of Rs 175 per share. On Thursday, the IPO of AGS gave Transact Technologies a premium of Rs 10. Friday’s rise in GMP indicated that a few more bidders may be interested in booking the issuance. The weak premium in the gray market, however, indicated a lukewarm listing of the issue next month in the stock market.
IPO details
AGS Transact Technologies Limited is set to raise Rs 680 crore through the issuance, of which Rs 204 crore has already been raised through anchor investments. The entire issue only has an offer for sale, or OFS portion, and thus the company does not receive any proceeds from the IPO issue. The company has set the price range of the IPO at Rs 166 to Rs 175 per share of the share. The issue may be featured on BSE and NSE on February 1.
AGS Transact Technologies IPO Subscription Status
As of Day 2 of the opening of the AGS IPO, investors booked 1.42 times of the shares for sale, according to data released by the Bombay Stock Exchange, or BSE. This was mainly facilitated by private buyers who signed up for the first IPO of the year within the opening. On day 2 of the public issuance, 2.06 subscriptions were made to the retail portion.
AGS IPO valuation
On FY21 financials, the IPO is valued at 6x EV/EBITDA and 1.5x EV/revenue, compared to CMS on CMP trades at 14.5x EV/EBITDA and 3.3x EV/revenue, according to Reliance Securities. The company is available at the higher end of the IPO price
band, at 38.5x earnings for FY21. The issue is priced at a P/BV of 3.7
based on its NAV of Rs 47.1, with a market cap of Rs.21.069 million,
which we think is reasonable, Anand Rathi said in a note.
Do you need to subscribe?
Choice broker: With ease in pandemic mitigation, anticipating an increase in ATM deployments by banks and further evolution in the digital payments space, we believe the company is well positioned to take advantage of its diversified product and services portfolio, diverse customer base and multiple revenue streams. That’s why we’re assigning a “Long Term Subscribe” rating to the issue.
Anand Rathi: While we are evaluating financially at the higher end of the IPO price band, the valuation seems reasonable considering all the above scenarios, we are assigning this IPO a ‘Subscribe-Long Term’ rating.
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