AGS Transact Technologies IPO: The initial share sale of the first IPO of the year ended a day back and received a strong response from bidders at the time of closing. The AGS Transact Technologies IPO was subscribed 8.22 times on Day 3 of bidding, after which the offer was closed, according to data available on the website of Bombay Stock Exchange, or BSE. The public offer came after a one-month gap at the primary market, following a year full of blockbuster issues at the Dalal Street with several companies making records through them. It was the first initial public offering of this year.
The public offer of AGS Transact Technologies Limited opened on January 19 and closed on January 22. During these three days of bidding, investors booked around 25.57 crore shares of the company against an issue size of over 2.86 crore (2,86,74,696) shares, as per BSE data.
The strong response to the AGS Transact Technologies IPO was mostly backed by non institutional investors, who subscribed to 27 times of the portion reserved for them. On the other hand, retail buyers bid for 3.25 times of the shares set aside for them, while Qualified institutional buyers put in bids for 2.82 times of their reserved portion.
The basis of allotment process will be done on January 27, while bidders who will be selected will get their credit to demat accounts on January 31. Bidders who will not qualify will get a refund on January 28. The issue might be listed o BSE and NSE on February 1, which is around two weeks later.
The company plans to raise Rs 680 crore through the issue, of which Rs 204 crore has already been raised through anchor investment. The entire issue only had an offer for sale, or OFS portion, and thus the company will not receive any proceeds from the IPO issue.
The offer had a price band of Rs 166 to Rs 175 per equity share.
The unlisted shares of AGS Transact Technologies were retailing at Rs 190 on Friday, January 21, at a Rs 15 premium on the upper limit of its price band, as per ipowatch.com. The data for Saturday was not available at the time of writing this article.
AGS and the promoter selling shareholder entered into an agreement, pursuant to which the selling shareholders from the OFS net proceeds will purchase the compulsorily convertible preference shares (of promoter corporate) held by AGS. This, in turn, will be utilised to redeem the issued outstanding NCDs. Indirectly, the funds will be received by the company, which will be utilized 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, i.e. Payment Solutions, Banking Automation Solutions and Other Automation Solutions. According to the RHP, AGS is the only cash management company that has followed Ministry of Home Affairs guidelines on a pan-India basis.
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