AGS Transact Technologies shares witnessed a flat listing on the exchanges on Monday. AGS Transact Technologies shares started trading at Rs 176 on the NSE, up 0.9 percent compared to the IPO issue price of Rs 175 each. On the BSE, the stock debuted at Rs 176 per share. AGS Transact Technologies is an integrated omnichannel payment solutions provider providing customized products and services including ATM and cash recycling machine outsourcing, cash management and digital payment solutions including merchant solutions, transaction processing services and mobile wallets.
The IPO of AGS Transact Technologies, which was conducted through a sale offer, received bids for 22.35 crore shares against a bid of 2.87 crore, translating to a bid of 8.22 times, the company had said. . Retail demand was 3.25 times, qualified institutional buyers 2.82 times and the non-institutional category received a subscription 27 times. It had previously raised Rs 204 crore from anchor investors.
AGS Transact Technologies IPO: What Are Analysts Saying?
Santosh Meena, head of research at Swastika Investment Ltd., said: “The company is one of India’s leading providers of omnichannel payment solutions with a strong network. But the government’s focus on digital payments will further reduce the use and availability of cash, which could negatively impact business operations.”
“The IPO was quoted at Rs 175 which is the same as the issue price. We had an avoidance assessment at the IPO because the government is focusing on digitization. The investors who have been awarded the allotment are advised to book the profits and look for other investment opportunities,” Meena said.
Give a buy label to the shares of AGS Transact Technologies; Ravi Singhal, Vice-Chairman at GCL Securities, said before the listing: “The issue was too expensive and there is nothing available to the investor as it is being offered for sale in its entirety. Given the high volatility and negative sentiment of the current market , I expect the shares of AGS Transact Technologies to trade at a discount of approximately 5 percent.”
At AGS Transact Technologies IPO Listing Price One Can Expect; Ravi Singh, Vice President and Head of Research at Share India said ahead of the listing: “As an integrated provider of omni-channel payment and cash solutions, AGS Transact’s diversified product portfolio, customer base and revenue stream has made it a great option to for long-term gains. However, the current market scenario is not a positive one, which could affect listing gains. We expect the listing to be somewhere in the range of Rs 160 to Rs 170 per share at a discount.”
Ashoka India Equity Investment Trust Plc, Kuber India Fund, Saint Capital Fund, IIFL Special Opportunities Fund, Abakkus Growth Fund, HDFC Mutual Fund (MF), Nippon India MF and Quant MF are among the top investors. As of March 31, 2021, the company was the second largest company in India in terms of ATM revenues under the outsourcing model, cash management revenues and number of ATMs topped up.
The market cap of the company was Rs 2,118 crore. In total, 0.51 lakh shares of the company have changed hands, representing a turnover of Rs 88.90 crore on BSE. On NSE, the share was trading at Rs 175. The market cap of the company rose to Rs 2,161 crore. A total of 47.47 lakh shares of the company have changed hands, representing a turnover of Rs 87.14 crore on the NSE.
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