Daily Stock Market Reports

AGS Transact Technologies share allotment today. Experts predict muted listing


AGS Transact Technologies shares are going to hit secondary market today. Shares of payment solution provider company will list at both NSE and BSE. As per the BSE notice, the equity shares of AGS Transact Technologies Limited shall be listed and admitted to dealings on the Exchange in the list of ‘B’ Group of Securities in a Special Pre-open Session (SPOS) on Monday, January 31, 2022. According to stock market experts, the public issue is richly priced that got reflected in moderate response by bidders. They said that due to the lower than expected subscription demand, AGS Transact Technologies shares may have a muted to discounted listing today.

Speaking on AGS Transact Technologies IPO listing; Prashanth Tapse, Vice President (Research) at Mehta Equities Ltd said, “Considering lower-than-expected subscription demands (QIB: 2.26x/ NII: 25x/ Retail: 3x) to its initial public offering (IPO), we expect muted or discount listing show in the volatile markets. We believe the reason for low demand would be on investors’ concern over 100 per cent OFS offer followed by denting selloff sentiments in the recently listed IPO like PayTM, Policybazaar, Shriram Properties and Rategain, which failed to perform on the listing day. We also see a few more concerning points like losses on books incurred in the last five months of FY22 and a flat growth in topline which is not giving enough room for any listing gains. Based on financial parameters, the issue was fully priced leaving nothing on table to new investors.”

Echoing with Prashanth Tapse’s views; Abhay Doshi, Founder at UnlistedArena.com said, “AGS Transact Technologies will be the first company to list in calendar year- 2022. The IPO seemed to be richly priced owing to which it got moderate response to its offer. The top and bottom line growth is lacking. On the top of it, broader markets have corrected deeply which may impact its listing. I expect the shares to debut in flattish manner around its issue price.”

Expecting tepid debut for AGS Transact Technologies shares; Manoj Dalmia, Founder and Director, Proassetz Exchange said, “AGS Transact Technologies is one of the leading payment solution providers and also the largest deployer of POS terminals at petroleum outlets. Although it was subscribed 7.79 times, it is an OFS and we expect a muted debut for AGS Transact shares. We also advise to book positions considering the current volatile markets.”

On AGS Transact Technologies IPO listing price that one can expect; Ravi Singh, Vice President and Head of Research at Share India said, “Being an integrated omni-channel payment and cash solutions provider, AGS Transact’s diversified product portfolio, customer base, and revenue stream has made it a good option to subscribe for long term gains. However, the current market scenario is not in a positive mode, which may affect the listing gains. We expect the listing may be at a discount somewhere in the range of 160 to 170 per equity share.”

Slapping ‘sell on rise tag’ to the AGS Transact Technologies shares; Ravi Singhal, Vice Chairman at GCL Securities said, “The issue was over-priced and there is nothing available for the investor as it is completely offer-for-sale. Considering high volatility and negative sentiment of the current market, I am expecting AGS Transact Technologies shares to list at somewhere around 5 per cent discount. The issue may list at around 165 per equity share.”

What grey market signals

AGS Transact Technologies IPO GMP today is 4, which means grey market is expecting AGS Transact Technologies shares to list at around 179 ( 175 + 4).

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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