AGS Transact Tech sets price band for first IPO of the year at Rs 166-175 a share

Payments solutions provider AGS Transact Technologies has set a price band of Rs 166-175 a share for its initial public offering (IPO).

Earlier, the firm had cut its IPO size to Rs 680 crore from Rs 800 crore. The first IPO of the year will open on January 19 and close on January 21. The firm is expected to list on exchanges on February 1.

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

“The recent weak listings and subdued response from retail investors to many IPOs are the reasons behind this. Also, globally, hawkish central banks have dampened the sentiment,” an analyst said on condition of anonymity.

Payments firm MobiKwik has delayed its plans to proceed with an IPO this month, said a TOI report. Meanwhile, The Economic Times said Go Air has 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.

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 book-running lead managers for the issue.