AGS Transact Tech cuts IPO size to Rs 680 crore, issue to open on January 19

Payments solutions provider AGS Transact Technologies has cut its initial public offering (IPO) size to Rs 680 crore from Rs 800 crore planned earlier. The first IPO issue of the year will open on January 19 and close on January 21.

The issue will entirely be an offer for sale wherein promoter Ravi B Goyal will sell shares worth up to Rs 677.58 crore. Earlier, he was planning to sell around Rs 800 crore.

The uncertainty in the market due to the rising Covid cases and the recent correction in the prices of many IPOs have led a few firms to delay their issue or cut the issue size.

“The recent weak listings and subdued investor response by retail investors of many IPOs are the reasons behind this. Also, globally, liquidity tightening by central banks dampened the sentiment,” an analyst said on a condition of anonymity

Payments firm MobiKwik has delayed its plans to proceed with an initial public offering (IPO) of shares this month, said a TOI report. Meanwhile, an Economic Times report said Go Air has temporarily put on hold its Rs 3,600-crore IPO plan.

AGS Transact Technologies provides customised products and services comprising ATM and CRM outsourcing, cash management and digital payment solutions including merchant solutions, transaction processing services and mobile wallets.

The IPO is expected to list on February 1.

Promoters of the company are Ravi B Goyal and Vineha Enterprises. Together they hold 97.61 percent stake in the company. The shareholding of AGSTTL Employees Welfare Trust stands at 1.51 percent .

ICICI Securities, HDFC Bank and JM Financial are appointed as the book running lead managers to the issue.