New Delhi: The initial public offering (IPO) of AGS Transact Technologies opened for subscription on Wednesday. The payment solutions provider has reduced the size of its public issue to Rs 680 crore from Rs 800 crore. The IPO consists offer of sale (OFS) of equity shares by the promoter and other selling shareholders.
The three-day initial share sale will conclude on January 21.
Here are key things to know about the offer:
* The company has raised Rs 204 crore from anchor investors ahead of its initial share sale.
* Price Band: The price has been fixed at Rs 166-175 apiece and investors can bid for a minimum of 85 equity shares and in multiples thereof. At the upper price band of Rs 175, a lot in the IPO will cost Rs 14,875.
* Emkay Global Financial Services: The brokerage said the offer is fairly priced and in line with peers. Emkay has given a "Subscribe" call with a long-term perspective. "At the higher price band, the stock is valued at 3.7 times FY21/3.8 times annualized FY22E (2021-22 estimates) BV (book value), similar to its peers like CMS Info Systems (recently listed with a decent up move) trading at 4.4 times FY21/3.7 times annualized FY22E BV and SIS with multiple business lines trading at 3.7x FY21 BV," Emkay Global stated in its report.
* Anand Rathi: "AGS Transact has a diversified product portfolio and the majority of the revenues are contributed by banking automation solutions, which includes supply and installation of ATMs and other automated banking products. The issue is priced at a P/BV of 3.7 based on its NAV (net asset value) of Rs 47.1, with a market cap of Rs 2,106.9 crore, which we believe is quite reasonable," the brokerage said.
"While evaluating on the financial front at the upper end of the IPO price band, the valuation seems to be reasonable. We assign 'SubscribeLong Term' rating to this IPO," it added.
* "The company's top-line and bottom-line growth are missing. Also, the valuation is highly-priced. So, investors may not find it as an attractive option," Manan Doshi of UnlistedArena.com told NDTV.
* Grey Market price: AGS Transact was quoting at a premium of Rs 7-8 per share, according to market observers.
* AGS Transact Tech is an integrated omnichannel payment solution and provides digital and cash-based solutions to banks and corporates.
* It provides products and services comprising ATM and Cash Recycler Machines (CRM) outsourcing, cash management and digital payment solutions like merchant solutions, transaction processing services and mobile wallets.
* ICICI Securities, HDFC Bank and JM Financial are the lead managers to the issue. The shares of the company are likely to be listed on February 1.
* As of 1 pm, the initial share sale attracted bids for 1.91 crore equity shares against the IPO size of 2.86 crore shares -- subscribed 67 per cent on the first day. Retail individual investors' portion was bokked 93 per cent times and non-institutional investors' category was subscribed 94 per cent.