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Funds options supplier AGS Transact Applied sciences opened its preliminary public provide (IPO) on January 19. The agency has fastened a value band of Rs 166-175 for the primary IPO of 2022. The difficulty will shut on January 21. The corporate is anticipated to checklist on exchanges on February 1.
The corporate raised Rs 204 crore from anchor traders on Tuesday.
It allotted over 1.16 crore fairness shares to anchor traders at Rs 175 apiece, aggregating the transaction measurement to Rs 204 crore.
Ashoka India Fairness Funding Belief Plc, Kuber India Fund, Saint Capital Fund, IIFL Particular Alternatives Fund, Abakkus Development Fund, HDFC Mutual Fund (MF), Nippon India MF and Quant MF are among the many anchor traders.
The IPO measurement has been lower to Rs 680 crore from Rs 800 crore. The difficulty will likely be solely a suggestion on the market whereby promoter Ravi B Goyal will offload shares price as much as Rs 677.58 crore.
The allotment of shares is more likely to be executed on January 27, 2022.
Half of the problem measurement has been reserved for certified institutional patrons, 35 per cent for retail traders and the remaining 15 per cent for non-institutional traders.
Lot measurement of the AGS Transact IPO is 85 shares for which one should spend Rs 14,875. A retail particular person investor can apply for as much as 13 heaps or 1,105 shares by spending Rs 193,375.
Promoters of the corporate are Ravi B Goyal and Vineha Enterprises. Collectively, they maintain 97.61 % stake within the firm.
The shareholding of AGSTTL Workers Welfare Belief stands at 1.51 % . The objects of the problem are to hold out a suggestion on the market by promoting shareholders and to appreciate the itemizing advantages of fairness shares on the inventory trade.
ICICI Securities, HDFC Financial institution and JM Monetary are the book-running lead managers for the problem.
Swastika Investmart has assigned an keep away from score to the IPO.
“The corporate’s income has been flat during the last three years, totally on the declining facet the place income in FY21 fell to Rs 1,797 cr from Rs 1,833 cr in FY20. The corporate’s revenue, alternatively, has been reducing. The corporate’s revenue fell from Rs 83 cr in FY20 to Rs 54.7 cr in FY21. The corporate’s margin additionally shrank. The corporate is certainly one of India’s main Omni-channel cost resolution suppliers with a powerful community. Nonetheless, the federal government’s concentrate on digital funds will additional lower the use and availability of money can have an adversarial impact on enterprise actions. The IPO is priced at a PE of 38x and P/BV of three.71x on the NAV of Rs 47.11, which is barely greater than its listed friends nevertheless, they don’t seem to be comparable on an apple-to-apple foundation, additionally the IPO is only OFS primarily based. Thus we assign an “AVOID” score to the IPO,” the brokerage stated.
Anand Rathi has given a ‘subscribe for long run’ score to the IPO.
“The diversified product portfolio, buyer base and income streams resulting in cross-selling alternatives for the corporate. Nonetheless, the corporate’s enterprise depends on their Banking companions. The corporate additionally has threats from new fintech corporations undertaken by newage digital Cost system viz micro-ATM, Aadhaar Enabled Cost System (AePS), UPI and so on. Whereas evaluating on the monetary entrance on the higher finish of the IPO value band the valuation appears to be affordable, factoring all of the above eventualities, we assign ‘Subscribe-Lengthy Time period’ score to this IPO,” stated the brokerage.
Previous to this, the corporate had made a number of makes an attempt to go public.
In 2018, AGS Transact Tech had filed draft papers with Sebi to boost Rs 1,000 crore by an IPO. It had secured the regulator’s nod too however didn’t go forward with the plan. The corporate had filed draft papers with the regulator in 2015 to boost as much as Rs 1,350 crore by an preliminary share-sale. Previous to that, the agency had filed preliminary papers with Sebi in 2010 to drift an IPO.
AGS Transact Applied sciences supplies customised services and products comprising ATM and CRM outsourcing, money administration and digital cost options together with service provider options, transaction processing providers and cellular wallets.
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