AGS Transact Tech IPO Subscription Status Day 3: Issue booked over 1.5 times on last day; should you subscribe?

AGS Transact Technologies Limited IPO (Initial Public Offerings) was subscribed 1.54 times at 10.20 am on Friday, the last day of the public offer. The three-day initial public offering will close on today, January 21,2022.  Omni-channel payment solution AGS Transact Technologies IPO was subscribed 1.41 times at 5 pm on Wednesday.  

Against 2,86,74,696 reserved shares for this issue, bids were made for 4,41,51,635 shares, showed NSE IPO bidding details.    

The retail investors portion was subscribed 2.23 times, as Retail Individual Investors (RIIs) bought 3,19,79,720 shares against their reserved quota of 1,43,37,348 shares. The Non-Institutional Investors' portion was subscribed 1.33 times as the category saw bidding for 81,59,745 shares against 61,44,578 on offer.   

See Zee Business Live TV Streaming Below:

Qualified Institutional Buyers (QIBs) was filled 0.49 times as the category witnessed bids for 40,12,170 shares against their quota of 81,92,770 shares on Day 3.  

Foreign Institutional Investors (FIIs) were yet to take part in the share sale.   

As today is the last day to apply what should investors do? Here is what experts suggest  

"Avoid the issue. Financial of the company is not impressive and AGS Transact Technologies had also incurred loss in current year, said Singhvi before recommending to avoid this issue," Zee Business Managing Editor Anil Singhvi had said on Wednesday.  

Aayush Agrawal, Senior Analyst, Swastika Investmart Ltd, said one should avoid this public issue stating that the company’s bottom and top lines have been either weak or muted for the last three years and the share price is slightly higher than listed its peers. “The government's focus on digital payments will further decrease the use and availability of cash can have an adverse effect on business activities,” he added.   

"The company derives majority of its revenues by providing various services to the banking sector. We have a NEUTRAL recommendation on the IPO given the premium valuations, high client concentration and losses in first months of FY22," said Angel One’s DVP- Equity Strategist, Jyoti Roy.  

Payment solutions provider AGS Transact Technologies plans to mop up Rs 680-crore through the share sale. The offer comes in a price range of Rs 166-175 per share. The minimum quantity is 85 shares or one lot for retail investors.