The Rs 680 crore IPO of AGS Transact Technologies is purely an offer for sale (OFS), through which the promoters of the company will reduce their stake.
AGS Transact Technologies IPO: The IPO of AGS Transact Technologies will open for subscription on Wednesday, January 19. With this IPO, the drought of about a month in the primary market of the country will end. Shares worth Rs 680 crore will be issued under this IPO. All these shares will be issued under the Offer for Sale (OFS), through which the existing shareholders, including the promoter of the company, Ravi B Goyal, will sell their stake.
Under the IPO, the shares of AGS Transact Technologies are to be issued in the price band of Rs 166 to Rs 175 per share. But before the subscription opens, it is bidding in the gray market at a premium of Rs 21 per share. A large number of IPOs are expected to open on Dalal Street during the year 2022, including the largest ever Life Insurance Corporation (LIC) IPO in the country.
IPO will be open on these dates
The IPO of AGS Transact Technologies will be open for subscription from Wednesday, January 19 to January 21, 2022. The company has announced to issue its shares in the fixed price band of Rs 166 to Rs 175 per share. 85 shares will be issued in one lot, so the minimum investment for an investor in the IPO will be Rs 15,045. The company plans to raise Rs 680 crore under the IPO, but due to being a complete offer for sale (OFS), no part of this amount will go to the company’s account. The promoters of the company are going to reduce their stake through the issue. Post the issue, the promoters’ stake in the company will reduce by about 32 per cent, while the published shareholding will increase to 33.26 per cent from the current 1.1 per cent.
Under the IPO, half of the shares are reserved for Qualified Institutional Buyers (QIBs). These 19,428 shares have been reserved for the QIB at the high level of the price band. Under the entire IPO, 13,600 i.e. 35 percent shares are to be issued to retail investors. Non-Institutional Investors (NIIs) can bid for 15 shares.
Features of AGS Transact Technologies
AGS Transact Technologies was incorporated in December 2002. The company is currently one of the largest payment solution providers in the country, providing digital and cash-based solutions to banks and corporate customers. This company provides payment solutions, banking automation solutions and other automation solutions. Its customers include customers from the retail, petroleum and color sectors. The company has also expanded its business to other Asian countries like Sri Lanka, Singapore, Cambodia, Philippines and Indonesia.
financial performance of the company
In the financial year ended March 2019, the company had achieved revenue of Rs 1805 crore, which declined to Rs 1759 crore during the previous financial year. The company’s net profit during the last quarter stood at Rs 54.79 crore, as against Rs 66.19 crore during the financial year 2018-19.