Last day to subscribe to AGS Transact IPO, GMP drops to ₹10

• In the first two days of IPO, payment solutions provider AGS Transact Technologies has been subscribed 1.49 times.
• The IPO is entirely an offer for sale of ₹680 crore through the public issue.
• Shares of the company are commanding a premium of ₹10 in the grey market, which has come down from ₹21 earlier.

Today, January 21, is the last day to subscribe to AGS Transact Technologies, which is an integrated omni-channel payment solutions provider in India in terms of providing digital and cash-based solutions to banks and corporates, initial public offering (IPO).

In the first two days of the subscription process, the IPO received a tepid response from investors as it was oversubscribed by 1.49 times.

The IPO is a complete offer for sale (OFS) of ₹680 crore with a price band of ₹166-175 per share.

Category of investors	Subscription status
Qualified institutional buyers	0.52 times
Non institutional investors	1.19 times
Retail	2.18 times
Overall	1.49 times

The company provides customised products and services comprising ATM and cash recycler machines (CRM) outsourcing, cash management and digital payment solutions including merchant solutions, transaction processing services and mobile wallets.

Grey market premium of the company’s shares have come down to ₹10 from ₹21 earlier.

Some analysts have recommended avoiding the IPO because of increasing digital payments in the country that could have an adverse effect on AGS Transact’s business.

“The company is one of India's leading omni-channel payment solution providers with a strong network. However, the government's focus on digital payments will further decrease the use and availability of cash can have an adverse effect on business activities,” said analysts at Swastika Invest while recommending a ‘avoid’ rating to the IPO.

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