Aggressive investors who want to defeat the crowd in the hot market for the initial public offering (IPO) who often achieve shares in unlisted markets, also called the gray market. Sometimes, such bets make investors get hurt.

AGS Transact Technology Stock fell by almost 68 percent on the market that was not registered from its recent RS 550 Hit shares in October 2021. It is currently quoted at Rs 185-195 per share, said the dealer.

The payment solution company plans to issue its shares to the public next week. The IPO price ribbon has been set at Rs 166-175 per share. This drops around 10% of the current unregistered price. Falling sharply and the price ribbon has disabled investors who obtained shares from the gray market, analysts said.

“In the midst of Euphoria IPO, the assessment in markets that are not registered with spikes and IPOs has recently been from similar colleagues, the CMS info system, on a much lower assessment gives the final blow to the unregistered stock price (AGS transaction),” said Manan Doshi, Co -Founder, Unlisterdalena.com, who deal with unregistered and pre-IPO shares.

CMS Info Systems Ltd., which was listed on December 2021, has a price ribbon RS 205-216 and currently trades nearly 37 percent higher than the price of the price ribbon. Interestingly, info CMS in his draft Red Herring Prospectus (DRHP) named AGS Transact as peer company. However, AGS transacted in the DRHP said he did not have a colleague registered.

The current price ratio (PE) CMS is at 26x while the PE AGS ratio comes out to 37.87x at the problem price. For FY21, CMS reported revenue of Rs 1,321.92 Crore and its net profit reached Rs 168.52 Crore. AGS reported RS 1,758.94 Crore income and Net Profit Rs 54.79 Crore for the same period.

Analysts suggest that the assessment does not reflect low profitability that is comparable to AGS. This, along with the fall of the equity market recently, seems to have dragged AGS stock prices down.

To be sure, AGS is not the only company that has set a ribbon that is much lower than the common stock price in the market that is not registered. Previously, UTI Asset Management Co. Ltd. and the price ribbon IPO PB Fintech was below the gray market level. UTI AMC is listed on the Exchange in September 2020 and the ribbon costs at RS 552-554 per share; However, market prices were not registered right before the IPO quoted around RS1,100 per share.

PB Fintech, the parent Paisabazaar platform, has set the IPO price ribbon of RS 940-980 per share even though the shares quote around Rs 1,900 each before the IPO.

“We have witnessed several accidents in the past too, the reason is the transfer of the core concept of investing in unregistered spaces, namely to enter the company in the early stages and growth, provided on reasonable assessment rather than just investing in the sake of conflicting conflicting. When the pre-space -Ipo developed, investors entered shares that were not registered with any assessment only because of the unsuccessful quota in the IPO, “Doshi added.