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AGS Transact Tech made a lacklustre debut on the bourses on Monday with a flat listing.
Shares of the payment solutions provider listed at ₹176 on the BSE, a premium of just around ₹1 or a little over 0.57 per cent compared to its issue price of ₹175. It climbed to a high of ₹181.85 after a flat opening. However, it fell to a low of ₹153.80 during the day. The company’s share closed at a discount of ₹13.70 or ₹7.83 per cent against the IPO price at ₹161.30. On the NSE, It listed flat at ₹175 and at ₹160.50.
The company came out with IPO at a price band of ₹166-175.
The IPO, which ended on January 21, was subscribed a little over eight times.
The IPO received bids for 22.35 crore equity shares against an offer size of 2.87 crore, subscribing 8.22 times. The portion reserved for retail investors was subscribed 3.25 times, while the qualified institutional buyers category subscribed the issue 2.82 times and the non-institutional category 27 times.
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The public issue was purely an offer-for-sale (OFS) of equity shares by a promoter and other selling shareholders. As part of the OFS, promoter Ravi B Goyal will now sell shares worth up to ₹677.58 crore. Earlier, he was looking to offload shares to the tune of ₹792 crore.
The company is an integrated omni-channel payment solutions provider providing digital and cash-based solutions to banks and corporates. It provides customised products and services comprising ATM and Cash Recycler Machines (CRM) outsourcing, cash management and digital payment solutions, including merchant solutions, transaction processing services and mobile wallets.
According to Gaurav Garg, Head of Research, CapitalVia Global Research Ltd, the first IPO in the calendar year 2022 had witnessed muted response on the back of “multiple reasons like weaker secondary market sentiments in the recent trading sessions, 100 percent OFS offer and a flat growth in topline.”
“Although the company is one of the leading players in the ATM management space with a strong pan India network, it has a threat from next-gen payment solutions providers,” said Garg.
Santosh Meena, Head of Research, Swastika Investmart Ltd said, “The company is one of India’s leading Omni-channel payment solution providers with a strong network. However, the government’s focus on digital payments will further decrease the use and availability of cash, which can have an adverse effect on business activities.”
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