AGS Transact makes Tepid Debut on Exchanges

AGS Transact opened for subscription on 19 January 2022. The company saw good demand from the investors and it got subscribed 7.79 times during the three-day window starting 19 January. The maximum demand was seen from the Non-Institutional investors with a subscription of 25.61 times. The retail and qualified institutional buyers subscribed 3.08 and 2.68 times.

The price band offered by the company was between Rs 166 and Rs 175 per share. The listing on BSE on Monday morning was at Rs 176 per share. 

AGS Transact is one of India's leading omnichannel payment solution providers. It is the second-largest company in India in terms of revenue from ATM managed services. At a higher price band of Rs 175, the company was asking P/E of 38.5x. It is much higher than the average peer P/E of 21.8x. The revenue from operations has remained stagnant in the last three financial years. The profit has declined from Rs 83.01 crore in FY20 to Rs 54.79 crore in FY21.

Update from brokerage 

Hem Securities had also recommended SUBSCRIBE call for the long term. It said, the company being an omnichannel integrated payment and cash solutions provider has a customer-driven portfolio with strong capabilities to develop customized solutions in-house.