AGS Transact Technologies IPO: After a long gap since last month, AGS Transact Technologies Limited is going to be the first company to float its initial public offering, or IPO, this year. The AGS Transact Technologies IPO is set to open on Wednesday, January 19, for a period of three days. This follows a one-month gap at the primary market, after a year full of blockbuster issues at the Dalal Street with companies making record. This year is going to be even better, with over 30 companies already waiting in line to float their initial public offerings, while there will be more such issues though the year.
Here are the Key Things You Should Know About AGS Transact Technologies IPO:
– IPO Dates: The AGS Transact Technologies IPO is set to open on January 19, Wednesday and will be available for bidding till January 21, Friday.
– AGS Transact Technologies IPO Price Band: The company has fixed the price band of the IPO at Rs Rs 166 to Rs 175 per equity share.
– Offer Details: AGS Transact Technologies Limited plans to raise Rs 680 crore through the issue. The entire issue only has an offer for sale, or OFS portion, and thus the company will not receive any proceeds from the IPO issue.
Promoter Ravi B. Goyal, will sell his shares worth Rs 677.58 crore though the issue. Other selling shareholders include VC Gupte, Shailesh Shetty, Rakesh Kumar, Nikhil Patiyat and Rajesh Harshedrai Shah who will sell their portions worth Rs 2.42 crore.
– AGS IPO Reserved Portion: As much as 50 per cent of the selling portion is reserved for the Qualified Institutional Buyers category, while 35 per cent of the shares of the IPO has been set aside for retail buyers. Non institutional buyers can bid for up to 15 per cent of the shares.
– IPO Lot Size: Investors who want to buy AGS Transact Technologies shares can bid for a minimum of 85 equity shares and in multiples of 85 shares thereafter. This means that investors can invest a minimum amount of Rs 14,875 per lot. On the other hand the maximum investment would be Rs 1,93,375 for 13 lots, as the cap is set at Rs 2 lakh.
– Objectives of Issue: AGS and the promoter selling shareholder entered into an agreement, pursuant to which the selling shareholders from the OFS net proceeds will purchase the compulsorily convertible preference shares (of promoter corporate) held by AGS. This, in turn, will be utilised to redeem the issued outstanding NCDs. Indirectly, the funds will be received by the company, which will be utilized to reduce the debt burden.
– Company Profile: AGS Transact Technologies Limited is an integrated omni-channel payment solutions provider operating in India. The company operates in three business segments, i.e. Payment Solutions, Banking Automation Solutions and Other Automation Solutions. According to the RHP, AGS is the only cash management company that has followed Ministry of Home Affairs guidelines on a pan-India basis
– AGS IPO GMP Today: The unlisted shares of AGS Transact Technologies were retailing at Rs 190 on Wednesday, at a Rs 15 premium on the upper limit of its price band. This indicated tepid listing for the AGS Transact Technologies IPO at the bourses later this month.
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