AGS Transact is a new listing today and it was a tepid debut – as against the IPO price of Rs.175, it got listed on the BSE at Rs.176 and went up to Rs.181.85.

The issue was subscribed 7.79 times, with HNIs portion subscribing 25.61 times, QIBs by 2.68 times and retail by 3.08 times.

The company provides ATM management and maintenance services for 14,000 outsourced ATMs and 19,200 managed ATMs of ICICI, Axis Bank etc in India. It is also the country’s 2nd largest cash management company, serving 46,000 ATMs, behind recently-listed CMS, which serves 66,000 ATMs.”

In our IPO Analysis, we had concluded, “Company’s margins and growth are inferior to fundamentally stronger CMS, while the IPO pricing does not adequately discount the same. Hence, avoid the IPO.”