AGS Transact Technologies shares made a flat listing on exchanges on 31 January 2022, as stocks opened 0.57% up at Rs 176 apiece from issue price at Rs 175 per share. At listing, the market capitalisation of the company stood at Rs 2,118.91 crore, according to BSE. This is the first company to list on bourses in calendar year 2022. AGS Transact Technologies’ Rs 680-crore IPO was subscribed 7.79 times. The public issue of AGS Transact Technologies was entirely an offer for sale (OFS) by existing shareholders of the company, including the Promoter of the company Ravi B Goyal.
AGS Transact is demanding a P/E multiple of 38.5x (to its FY21 earning of Rs. 4.6), according to Choice Broking. This, they say, is at a premium to peer average of 21.8x. With ease in pandemic restriction, anticipating a ramp-up in ATM deployments by banks and further evolution in the digital payment space, analysts at Choice Broking feel the company is well placed to benefit from its diversified product & services portfolio, varied customer base and multiple revenue streams.
AGS Transact Technologies reported a decline in revenues between FY19 and FY21, impacted by the ongoing pandemic. The company’s profits have also declined over this period. In fact, in the Apr-Aug 21 period, AGS Transact Tech has clocked losses of Rs 18.11 crore. At the higher end of the price band, AGS Transact IPO is priced at a PE ratio of 38 times based on FY21. This is higher than CMS Info Systems (30 times). Notably, the company has cut the size of its public issue to Rs 680 crore, from Rs 800 crore as planned earlier, SEBI registered investment advisor INDmoney said in a report.
AGS Transact, incorporated in December of 2002, is one of the largest integrated omnichannel payment solutions providers in India in terms of providing digital and cash-based solutions to banks and corporate clients, as of March 31, 2021. The company operates their business in the following segments, Payment Solutions; Banking Automation Solutions; Other Automation Solutions (for customers in the retail, petroleum and color sectors).