The issue was subscribed 58 per cent in the first two hours of bidding. The issue received applications for 1,67,36,075 shares so far against on offer 2,86,74,696 shares.
Ahead of the public bidding, the payment solutions provider on Tuesday raised Rs 204 crore from anchor investors. The company allotted over 1.16 crore equity shares to anchor investors at Rs 175 apiece.
Ashoka India Equity Investment Trust Plc, Kuber India Fund, Saint Capital Fund, IIFL Special Opportunities Fund, Abakkus Growth Fund, HDFC Mutual Fund (MF), Nippon India MF and Quant MF are among the anchor investors.
The issue is an offer for sale mostly from the company’s promoter. The company will not get any proceeds directly, though the fund will eventually flow into it via a different mechanism, which the company will use to reduce its debts.
Most analysts are positive on the issue, with some cautioning about debt on its books.
“We believe AGS provides an opportunity to invest in a cash-cum-digital play from a long-term perspective,” said Anand Dama of Emkay Global, adding that the IPO is fairly priced in line with peers. He gave a ‘subscribe’ rating for the issue.
The promoter is selling shares in the Rs 166-175 range. Interested investors can bid for them in a lot of 85 shares and in multiples thereof. The company will be valued at Rs 2,107 crore if it lists at IPO price.
AGS Transact provides customised products and services comprising ATM and CRM outsourcing, cash management and digital payment solutions including merchant solutions, transaction processing services and mobile wallets.
As of March 31, 2021, the company was the second largest company in India in terms of revenue from ATM managed services under the outsourcing model, and revenue from cash management and number of ATMs replenished.
Earlier in 2018, AGS Transact Tech had filed draft papers with Sebi to raise Rs 1,000 crore through an IPO. It had secured the regulator’s nod too but did not go ahead with the plan.
The company had filed draft papers with the regulator in 2015 to raise up to Rs 1,350 crore through an initial share-sale. Prior to that, the firm had filed preliminary papers with Sebi in 2010 to float an IPO.
Source: The Economic Times
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