AGS Transact Technologies IPO (Initial Public Offering) opened for subscription on 19th January 2022 and it will remain open for bidding till 21st January 2022. So, bidders have just one day left to apply for the public issue. As per the AGS Transact Technologies IPO subscription status by day 2, the public issue worth Rs680 crore has been subscribed 1.42 times whereas its retail portion has been subscribed 2.06 times. As per the market observers, shares of AGS Transact Technologies are available at a premium of Rs10 in grey market today.

AGS Transact Technologies IPO GMP

According to market observers, AGS Transact Technologies IPO grey market premium (GMP) today is Rs10, which is Rs2 higher from its yesterday's grey market premium. Market observers went on to maintain that AGS Transact Technologies IPO GMP had been nosediving ever since it made its debut in the grey market last week. In last one week, it had fallen from Rs23 to Rs8 levels, but today's rise in AGS Transact Technologies IPO GMP may attract some additional bidders for the public issue. They said that tepid response to the public issue can be attributed to 100 per cent offer-for-sale (OFS).

What this GMP means?

On what this GMP means, market observers said that grey market premium is nothing but an unofficial speculation by the grey market about the listing gains one can expect from the public issue. As AGS Transact Technologies IPO GMP today is Rs10, it means that grey market is expecting this IPO to list at around Rs185 ( Rs175 Rs10), which is around 6 per cent higher from its price band of Rs166 to Rs175 per equity share.

However, stock market experts are of the opinion that GMP should not be the criteria to decide upon the success or failure of an IPO as it has nothing to do with the balance sheet of the company.

AGS Transact Technologies IPO: Subscribe or not?

Whether one should apply for the IPO or not; Astha Jain, Senior Research Analyst at Hem Securities said, "Company is bringing the issue at price band of Rs166-175 per share at p/e multiple of 38x on FY21 eps basis. Company being omni-channel integrated payment and cash solutions provider has customer driven portfolio with strong capabilities to develop customized solutions in-house. Company has diversified product portfolio, customer base and revenue streams leading to cross-selling opportunities has long-standing relationships with Technology providers and customers. Also, company has dedicated in-house infrastructure and technological Capabilities with experienced board of directors and senior management. Hence, we recommend “Subscribe" on issue for long term perspective."