AGS Transact Technologies IPO

 

AGS Transact Technologies Limited is among India’s leading integrated omni-channel payment solutions providers, delivering digital and cash-based services to banks and corporate customers as of March 31, 2021. AGS Transact Technologies IPO will the market in 19 January 2022.

About AGS Transact Technologies

They provide a variety of customised products and operations, such as ATM and CRM outsourcing, cash management, and digital payment systems, such as merchant solutions, transaction processing, and mobile wallets.

They were India’s second largest firm in terms of income from ATM managed services under the outsourcing approach, income from cash management, and the count of ATMs refilled as of March 31, 2021. (Source: Ken ATM Report).

They have rolled out IPS at more than 16,000 petroleum outlets in India with 28,986 terminals as of March 31, 2021, making them one of the leading deployers of POS terminals at petrol pumps in India (Source: Ken Payments Report).

Journey

In 2004, they began offering banking automation solutions in India. They used goods from worldwide solution suppliers like Diebold Nixdorf and built their own nationwide service infrastructure and automation solutions expertise to offer associated services.

They began offering ATM outsourcing and managed services in 2009, leveraging their banking automation solutions expertise and service reach by, among other things, engaging into two collaboration agreements with Diebold Nixdorf for banking and retail products.

Growth

They began delivering transaction switching services in 2011 and cash management services in 2012 as part of their aim to increase their position in the cash value chain, create an integrated payments platform, and improve operational efficiencies.

They enhanced its comprehensive digital platform and Software-as-a-Service (“SaaS”) capabilities in 2014 by expanding their products into digital payment services.

They also formed a partnership with ACI Worldwide (“ACI”), a prominent worldwide payments solution provider, in 2016, which has improved their client value offering.

Business Segments

The following are the segments in which they operate:

• Payment Solutions

ATM and CRM offshore and managed tools, cash management services, iCDs, digital payment assistance such as toll and transit solutions, Fastlane, transaction switching services, services via POS machines, and agency banking are all part of their Payment Solutions category.

ICICI Bank Limited, Axis Bank Limited, HDFC Bank Limited, and Federal Bank Limited are among our Payment Solutions clients.

• Banking Automation Solutions

Their Banking Automation Solutions business section, which began in 2004, offers ATMs and CRMs, as well as currency technology and self-service terminals, as well as related services and updates.

They have about 50 banking clients as of March 31, 2021, namely ICICI Bank Limited, HDFC Bank Limited, and Axis Bank Limited.

• Other Automation Solutions

The selling of machines and associated products to clients in the retail, petroleum, and colour industries is under their Other Automation Solutions business area. They sell automation products and provide installation services, system integration, remote administration and support, and help desk services as part of their Other Automation Solutions business.

More Retail Private Limited is a customer of their retail sector products, whereas HPCL, IOCL, and BPCL are clients of their petroleum industry offerings. Clients include Kansai Nerolac Paints Limited and Berger Paints India Limited, and their colour activities largely consist of the provision of automatic paint dispensers and associated services.

AGS Transact Technologies IPO

AGS Transact Technologies Limited, headquartered in Pune has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 800 crore value equity share on 18 August 2021.

The offer doesn’t includes any fresh equity shares and There is an offer for sale (OFS) of 800 crore value equity shares by the promoters mentioned in the DRHP.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
		31-Mar-21	31-Mar-20	31-Mar-19
Total Assets		2,913.83	2,241.40	2,054.43
Total Revenue		1,797.15	1,833.53	1,823.63
Profit After Tax		54.79	83.01	66.19

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	4.62	4.55	3
Financial Year 2020	7.00	6.90	2
Financial Year 2019	5.58	5.53	1
Weighted Average	5.57	5.50

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

The following are among the basic factors that contribute into determining the Offer Price:

• Provider of Omni-Channel Integrated Payment & Cash Systems.
• Customer-focused portfolio with excellent in-house capabilities for developing customised solutions.
• Cross-selling possibilities arise from a diverse product portfolio, customer base, and revenue streams.
• Relationships with technology suppliers and clients that have lasted a long time.
• Infrastructure and technological expertise committed to the company.
• Senior management and a well-versed Board of Directors.

AGS Transact Technologies IPO Peer Comparison

There are no publicly traded firms in India with a range of products and services equivalent to theirs, or a scale of operations comparable to theirs. As a result, providing an industry analysis in respect to their Business is not feasible.

AGS Transact Technologies IPO Details

IPO Opening Date	19 January 2022
IPO Closing Date	21 January  2022
Issue Type	Book Building
Face Value	10 per share
IPO Price	166 to 175 per equity share
Market Lot	85
Min Amount	INR 14875
Listing At	BSE, NSE
Issue Size	800 Crore
Fresh Issue	0
Offer for Sale	800 Crore

AGS Transact Technologies IPO Date

AGS Transact Technologies IPO opening date is 19 January 2022, and the closing date is 21 January 2022. The AGS Transact Technologies issue may list in 1 February  2022.

IPO Opening Date	19 January 2022
IPO Closing Date	21 January 2022
Basis of Allotment Date	28 January 2022
Initiation of Refunds	28 January 2022
Credit of Shares to Demat Account	31 January 2022
IPO Listing Date	1 February  2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum 1 lot based on availability.

AGS Transact Technologies IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of AGS Transact Technologies IPO.

AGS Transact Technologies IPO GMP

AGS Transact Technologies IPO Grey Market Premium is INR 0.

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
31 January 2022	0	0	0
30 January 2022	0	0	0
29 January 2022	0	0	0
28 January 2022	0	0	0
27 January 2022	0	0	0
27 January 2022	0	0	0
26 January 2022	0	0	0
25 January 2022	0	0	0
24 January 2022	2	1600	150
23 January 2022	3	900	100
22 January 2022	7	1100	100
21 January 2022	9	1500	150
20 January 2022	10	1700	200
19 January 2022	13	1900	250
18 January 2022	20	3500	450
17 January 2022	22	3200	400
16 January 2022	18	2500	300
15 January 2022	27
14 January 2022	23
13 January 2022	25

AGS Transact Technologies IPO Review

AGS Transact Technologies IPO review is In our view you can subscribe to this IPO with long term View. However, Some listing gains are also possible. So hope you get the answer for AGS Transact Technologies IPO is good or bad.

AGS Transact Technologies IPO Risk

• The COVID-19 epidemic has had, and may continue to have, some negative consequences for their company.
• A small number of clients account for a large amount of their revenue.
• They engage in fee-based activities, and if we are unable to earn revenue from these activities, it will have a negative impact on their business.
• The Reserve Bank of India and other government authorities heavily regulate the sectors in which they operate.
• Their Firm, their Directors, their Subsidiaries, and one of their Promoters are all involved in ongoing legal actions.
• Any modifications in interchange fees made by the NPCI, whether as a result of prospective regulation changes or otherwise, might hurt their company.

Other Threats

• They may encounter difficulties running and maintaining the ATM and CRM locations they lease, which might have a negative impact on their company.
• A reduction in the usage of cash as a payment method might have a negative impact on their company.
• Their new service and product innovations may not be effective, thereby impacting their company and operating performance.
• Any payment delay or default by a client might result in a decrease in their profitability.
• In particular markets, where infrastructure may be inadequate, they encounter challenges and incur significant costs.
• Their financing agreements include variable-rate interest, and any rises in interest rates might have a negative impact on their business and results of operations.

Growth

They were also the first to use IPS with OMCs. They generated 95.6 percent, 95.5 percent, and 96.1 percent of their revenues in fiscal years 2021, 2020, and 2019, respectively, from activities in India, where their business began.

Although they have extends worldwide to give automation as well as payment services to banks and financial institutions in Sri Lanka, Singapore, Cambodia, the Philippines, and Indonesia.

They have a proven track record of generating strong financial results as well as ongoing expansion. They think they have a solid management team with extensive industry expertise and established customer ties.

Service

They installed, preserved, or handled a system of about 72,000 ATMs and CRMs, offered cash management assistance to 47,569 ATMs via SVIL, equipped 207,335 merchant POS and roughly 46,000 cash billing terminals, automated approximately 16,700 petroleum outlets, and installed 85,700 colour dispensing machines.

SVIL refilled an average daily amount of roughly 20 billion, 10 billion, and 9 billion in the fiscal years 2021, 2020, and 2019, and completed 1,094.93 million, 871.74 million, and 936.83 million switching transactions, correspondingly.

Their activities spanned roughly 2,200 cities and towns, with 420,000 equipment being serviced.

AGS Transact Technologies IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

AGS Transact Technologies IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
19 January 2022	1	0.00	1.08	1.39	N/A	0.93
20 January 2022	2	0.52	1.19	2.18	N/A	1.49
21 January 2022	3	2.82	27.00	3.25	N/A	8.22

Promoters

• Ravi B. Goyal
• Vineha Enterprises Private Limited.

Promoters’ Holding

Pre Issue Share Holding	97.61%
Post Issue Share Holding