AGS Transact Technologies IPO: The AGS Transact Technologies IPO, or Initial Public Offering, was subscribed 0.89 times at the end of the first day of bidding the day before. AGS Tracsact Technologies’ initial share sale will be open for two more days, including Thursday, December 20, before closing on Friday. AGS Transact Technologies Ltd. was the first company to open its public offering in 2022, and after a hugely successful year of IPOs in the primary markets, investors are rushing to book the issue. According to analysts, this year is about to get even better, with more than 30 companies already queuing up to issue their initial public offerings.
AGS Transact Technologies IPO subscription status
AGS. As of Day 1 of the opening of IPOAccording to the Bombay Stock Exchange or BSE data, investors booked 2.51 crore shares against the issue size of 2.86 crore equity shares. This was primarily facilitated by retail buyers who subscribed to first ipo of the year within hours of its opening. The retail segment was subscribed 1.32 times on the first day of the public issue. On the other hand, the non-institutional buyers bought 1.02 times the shares allotted to them, while the qualified institutional buyers’ share is yet to be booked.
IPO Details
AGS Transact Technologies Ltd plans to raise Rs 680 crore through the issue, of which Rs 204 crore has already been raised through anchor investment. The Offer for Sale or OFS is only part of the entire issue, and thus the Company will not receive any proceeds from the IPO issue. The company has fixed the IPO price band from Rs 166 to Rs 175 per equity share. Investors who wish to buy shares of AGS Transact Technologies can bid for a minimum of 85 equity shares and thereafter in multiples of 85 shares.
AGS IPO GMP
Unlisted shares of AGS Transact Technologies were retailing at Rs 190, the upper limit of its price band, at a premium of Rs 15 on Wednesday. Thursday’s data was not available at the time of writing this article.
AGS Transact Technologies IPO Key Strength
The highlight of this IPO is that the company is an omni-channel integrated payment and cash solutions provider. AGS Transact Technologies Limited has a customer driven portfolio with strong capabilities to develop customized
Solution at home. Its diverse product portfolio, customer base and revenue
Currents lead to cross-selling opportunities. The company also has longstanding relationships with technology providers and customers.
AGS IPO Valuation
On FY21 financials, the IPO is valued at 6x EV/EBITDA and 1.5x EV/Sales, while the CMP trades at 14.5x EV/EBITDA and 3.3x EV/Sales as per Reliance Securities. At the higher end of the price band, AGSTransact will trade at a P/E multiple of 38.5xFY21 EPS, which is at a premium to CMS Infosystems, AngelOne said in a note.
Should you invest?
AngelOne: AGS has a high customer concentration, with the top three customers accounting for 33.6 percent of revenue and reported losses for the first five months of FY22. We have a neutral recommendation on IPOs considering the premium valuation, high client concentration and losses in 5MFY2022.
Reliance Securities: Market leadership in ATM managed services and cash management with healthy margins and high return ratios Given the distinctive product offerings, strong industry growth and valuations at discount to peers, we recommend subscribing to this issue with a positive outlook give.
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