AGS Transact Technologies IPO - Subscription Day 1

5paisa Research Team 5paisa Research Team 13th December 2022 - 03:58 pm

The Rs.680 crore IPO of AGS Transact Technologies Ltd, consisting entirely of an offer for sale (OFS) of Rs.680 crore, saw stable response on Day-1 of the IPO. As per the combined bid details put out by the BSE at the end of Day-1, AGS Transact Technologies Ltd IPO was subscribed 0.88X overall, with strong demand coming only from the retail segment and the HNI segment while the QIB response was absent on the first day. The issue will close for subscription on Friday, 21st January 2022.

As of close of 19th January 2022, out of the 286.75 lakh shares on offer in the IPO, AGS Transact Technologies Ltd saw bids for 251.98 lakh shares. This implies an overall subscription of 0.88X. The granular break-up of subscriptions was dominated by the retail investors and the HNI segment. The QIB response was absent on the first day of the IPO. Normally, it is only on the last day of bidding, the NII bids and the QIB bids build up substantial momentum. First day response may not be too suggestive in this case.

AGS Transact Technologies IPO Subscription Day 1

Category	Subscription Status
Qualified Institutional Buyers (QIB)	0.00 Times
Non Institutional Investors (NII)	1.02 Times
Retail Individuals	1.32 Times
Employees	N.A.
Overall	0.88 times

QIB Portion

Let us first talk about the pre-IPO anchor placement. On 18th January, AGS Transact Technologies Ltd did an anchor placement of 1,16,57,141 shares at the upper end of the price band of Rs.175 to a total of 17 anchor investors raising Rs.204 crore, representing 30% of the total issue size.

The list of QIB anchors included a number of marquee international names like Ashoka Equity, Kuber Fund, BNP Arbitrage, Saint India Fund and Tara Emerging Asia. Domestic investors in the anchor placement included HDFC Mutual Fund, Nippon India Fund, Abakkus Fund, IIFL Special Opportunities Fund and Quant Mutual Fund.

The QIB portion (net of anchor allocation as explained above) has a quota of 81.93 lakh shares of which it has got NIL bids at the close of Day-1, implying NIL subscription for QIBs at the close of Day-1. However, QIB bids typically get bunched on the last day but the solid response in the anchor placement shows that there is institutional appetite for the IPO.

HNI / NII Portion

The HNI portion got subscribed 1.02 times (getting applications for 62.80 lakh shares against the quota of 61.45 lakh shares). This is a relatively good response at the close of Day-1 because most of the response has come from corporates. However, this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO only.

Retail Individuals

The retail portion was subscribed a healthier 1.32 times at the close of Day-1, showing strong retail appetite; as has been the general trend with smaller sized IPOs. It must be noted that retail allocation is 35% in this IPO. For retail investors; out of the 143.37 lakh shares on offer, valid bids were received for 189.19 lakh shares, which included bids for 143.44 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.165-Rs.175) and will close for subscription on 21st January 2022.

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