AGS Transact Technologies IPO Subscribed 88% On Day 1
AGS Transact Technologies Ltd.'s initial public offer, the first mainboard float of 2022, saw its retail and non-institutional portion fully subscribe on the first day.
Mainboard IPOs are for companies with a minimum post-issue paid-up capital of Rs 10 crore.
The omnichannel payment solution provider's offering comprises an offer for sale of Rs 680 crore by its promoter and selling shareholders. The company has scaled down the offering from earlier plan of Rs 800 crore.
The company has set a price band of Rs 166-175 per share for its three-day IPO. It's seeking a market value of Rs 2,106.9 crore at the upper end of the price band.
The promoter and selling shareholders are offering 32.28% stake in the IPO. Following the share sale, promoter stake will fall to 66.5%.
The promoters will use the proceeds to acquire the Rs 650-crore compulsorily convertible preference shares held by the company in the promoter entity Vineha Enterprises Pvt.
The company, in turn, will use the amount received to redeem the non-convertible debentures listed on the NSE, thus paring gross debt to Rs 1,150-1,200 crore.
AGS Transact competes with the newly-listed CMS Info Systems Ltd., SIS Ltd., and Radiant Cash Management Services Pvt.
Subscription Details: Day 1
The IPO was subscribed 0.88 times or 88% as of 5 p.m. on Jan. 19.
Institutional investors: 0 times.
Non-institutional investors: 1.02 times.
Retail investors: 1.32 times.