Payment solution provider AGS Transact Technologies has launched its IPO today. Retail investors can invest in it till January 24.
This is the first IPO of 2022. The company plans to raise Rs 680 crore from this IPO.
Positive / Negative Points-
Market expert Anil Singhvi has advised to stay away from IPO. He has advised Nota / Avoid IPO. Anil Singhvi said it is the second largest company in cash management and ATM services and that is a positive thing for the company. However, the financial condition of the company is very bad. The company is also facing losses this year. Despite the cash, the debt on the company is high. Salary, GST and payment of some borrowers have also been delayed. In such a scenario, it would be better to stay away from IPOs, said Singhvi.
680 crore shares were issued in AGS Transact Technologies IPO. All these shares are given in Offer for Sale (OFS). Existing shareholders, including the company’s promoter Ravi B Goyal, will sell their stakes. Following the issue, the promoter’s stake in the company will be reduced by about 32 per cent, while the published shareholding will increase from the current 1.1 per cent to 33.26 per cent.
Price band and lot size-
AGS Transact Technologies has set a price band of Rs 166-175 per share for their IPO. At the same time, it will have a lot size of 85 shares. Bidding is required for at least one lot. In the case of a price band above Rs 175, a minimum of Rs 14,875 will have to be placed in an IPO. After that, investments can be made in multiples of 85 shares.
How many reserved seats?
Under the IPO, 50 per cent equity is reserved for Qualified Institutional Buyers. 35% is reserved for Retail Investors. 15 per cent is reserved for Non Institutional Buyers.
What does the company do?
AGS Transact Technologies was founded in December 2002. The company is currently one of the largest payment solution providers in the country offering digital and cash-based solutions to banks and corporate customers. The company offers Payment Solutions, Banking Automation Solutions and other automation solutions. Its customers include customers in the retail, petroleum and color sectors. The company has also expanded its business to other Asian countries, such as Sri Lanka, Singapore, Cambodia, the Philippines and Indonesia.