AGS Transact IPO: AGS Transact IPO may open on Jan 19; stock 68% off high in unlisted market

According to sources, the IPO of AGS Transact Technologies may hit the primary market on Wednesday, January 19. However, ETMarkets.com could not verify it.

Dinesh Gupta, Co-founder, UnlistedZone said the company is trading around Rs 170-175 in the pre-IPO market. He expects IPO to be priced in the range of Rs 175-200 per share.

AGS Transact, an active counter in the unlisted space, has been in hibernation ever since it corrected sharply from its peak of Rs 550.

“The shares of AGS Transact have been hit hard following a poor performance of recently listed fintech companies, including Paytm, Fino Payments Bank, CMS Info Systems, among others,” said Sunil Chandak, Equity Strategist at Gennext Investrade.

The company is one of India’s leading omni-channel payment solution providers. It primarily operates in three business segments, including payment solutions, banking automation solutions and other automation solutions. It is the second-largest company in India in terms of revenue from ATM managed services and also the largest deployer of POS terminals at petroleum outlets in India.

Dealers tracking the counter in the listed market have mixed views on the counter. A few of them are suggesting investors to keep off it while others believe that the scrip has a decent value at current levels.

“Thanks to its weak financials, the counter has seen a dull response. Instead of buying lock-in shares from the unlisted space, investors should seek other opportunities,” Gupta added.

Contrary to this, Chandak believes that the company has a very strong business model and current prices are a decent entry point for the buyers. “One has to see the leverage of the company,” he added.

AGS Transact has a network of 207,335 merchant POS, 16,700 petroleum outlets, 72,000 ATMs and CRMs offering cash management services, 46000 cash billing terminals, and installed 85,700 colour dispensing machines at the end of FY21.

The business serves customers in 2200 cities and towns through 420,000 machines or customer touchpoints. It reported a net profit of Rs 54.79 crore and revenue of Rs 1,797.15 crore from the fiscal year ended on March 31, 2021.