AGS Transact Technologies Ltd is one of India’s leading omni channel payment solution providers. It is the second largest company in India in terms of revenue from ATM operated services and is also the largest company that sends POS terminals to petroleum stores in India. It not only exploits the Indian market but also expands to other Asian countries including Sri Lanka, Cambodia, Singapore, Indonesia, and the Philippines. The company primarily operates 3 business units;
- Payment Solution services such as ATM and CRM outsourcing, cash management services, digital payment solutions, transaction switching services, POS machine services, agency banking, etc. As of March 31, 2021, it has a portfolio of 13,959 ATMs and CRMs under outsourcing and 18,408 ATMs and CRMs under managed service segment. It has also deployed POS terminals at leading Indian petroleum outlets such as Hindustan Petroleum, Indian Oil Corporation while Dr. Lal Pathlabs, Patanjali Ayurved, RJ Corp Ltd, VRIPL Retail Pvt Ltd, Organic India are the corporate clients.
- Banking Automation Solutions i.e. Sale of ATM and CRM, self-service terminals, currency technology products, and relevant services. As of March 31, 2021, AGS Transact has 50+ banking customer base i.e. ICICI Bank. Axis Bank, and HDFC Bank Ltd.
- Other Automation Solutions for customers in petroleum, retail, and colour segments such as system automation products, system integration, remote management, and other service offerings.
As of March 31, 2021, it had installed a network of 207,335 merchant POS, 16,700 petroleum outlets, 72,000 ATMs and CRMs offering cash management services, 46000 cash billing terminals, and installed 85,700 colour dispensing machines. The business serves customers in 2200 cities and towns through 420,000 machines or customer touch points.
Competitive Strengths
- An integrated omni-channel payment and cash solutions provider.
- Diversified product portfolio, customer base, and revenue stream.
- Strong capabilities to develop customized in-house solutions.
- Long-standing relationship with global technology providers i.e. Diebold Nixdorf, ACI.
- Strong in-house infrastructure and technological capabilities.
Company Promoters
- Ravi B. Goyal
- Vineha Enterprises Private Limited.
Company Financials
| Particulars | For the year/period ended (₹ in Millions) | ||
|---|---|---|---|
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |
| Total Assets | 29,138.32 | 22,413.95 | 20,544.26 |
| Total Revenue | 17,971.52 | 18,335.26 | 18,236.30 |
| Profit After Tax | 547.92 | 830.14 | 661.94 |
Objects Of The Issue
The IPO aims to utilize the net proceed for the following objectives;
- To carry out an offer for sale by selling shareholders.
- To realize the listing benefits of equity shares on the stock exchange.
AGS Transact Technologies IPO – Business Strategy
- Focus on Growing their Digital Payment Solutions Business
- Pivot from Payments-as-a-Service to Payments-as-a-Convenience through their Ongo Card and Ecosystem
- Focus on ATM and CRM Outsourcing and Managed Services
- Focus on Enhancing their Integrated Technology Payments Platform
- The focus on Cash Management Services
- Expand Internationally
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.
AGS Transact Technologies IPO – Details
| IPO Opening Date | 19 January 2022 |
| IPO Closing Date | 21 January 2022 |
| Issue Type | Book Built Issue IPO |
| Issue Size | ₹ 680 Crore |
| Face Value | ₹10 per equity share |
| IPO Price | ₹166 To ₹175 Per Equity Share |
| Market Lot | 85 Shares (1 Lot) |
| Min Order | 85 Shares |
| Listing At | BSE, NSE |
| Register | LinkInTime India Private Ltd |
AGS Transact Technologies IPO – Date Schedule
| IPO Open Date | 19 January 2022 |
| IPO Close Date | 21 January 2022 |
| Basis of Allotment Date | 27 January 2022 |
| Initiation of Refunds | 28 January 2022 |
| Credit of Shares to Demat Account | 31 January 2022 |
| IPO Listing Date | 01 February 2022 |
AGS Transact Technologies IPO – Lots Size & Price
| Application | Lots | Shares | Amount ( Cut-Off) |
| Minimum | 1 | 85 | 14,875 |
| Maximum | 13 | 1105 | 1,93,375 |
Promoter Holding
| Pre Issue Share Holding | 98.23% |
| Post Issue Share Holding | 66.07% |
AGS Transact Technologies IPO Prospectus
Company Contact Information
| AGS Transact Technologies Limited 601-602 Trade World, B Wing, Kamala Mill Compound, Senapati Bapat Marg, Lower Parel, Mumbai 400 013, Maharashtra, India Tel: +91 22 6781 2000 E-mail: ipocompliance@agsindia.com Website: www.agsindia.com |
AGS Transact Technologies IPO Registrar
| Link Intime India Private Limited C-101, 1st Floor, 247 Park L.B.S. Marg, Vikhroli West, Mumbai 400 083 Maharashtra, India Tel: +91 22 4918 6200 E-mail: ags.ipo@linkintime.co.in Website: www.linkintime.co.in |
AGS Transact Technologies IPO Lead Manager(s)
| 1. HDFC Bank Limited 2. JM Financial Limited 3. ICICI Securities Limited |
AGS Transact Technologies IPO FAQs
| When AGS Transact Technologies IPO will open? The AGS Transact Technologies IPO dates are 19 January 2022 To 21 January 2022. |
| What is the lot size of AGS Transact Technologies IPO? AGS Transact Technologies IPO lot size is 85 Shares and total amount is ₹14,875. |
| How to apply for AGS Transact Technologies IPO? You can apply in AGS Transact Technologies IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don’t offer banking services. |
| When is AGS Transact Technologies IPO listing date? The AGS Transact Technologies IPO listing date is announced. The date of AGS Transact Technologies IPO listing is 01 January 2022. |
