AGS Transact Technologies IPO opens today for subscription at a price band of Rs166-Rs175 per share

19 Jan 2022 , 10:58 AM

Payments solution services provider, AGS Transact Technologies has launched its initial public offering (IPO) aggregating to Rs680cr, on Wednesday. The IPO will be available till January 21, 2022, for a subscription.

The IPO is purely an offer for sale worth Rs680cr carried by the promoter and other selling shareholders. Promoter Ravi B. Goyal will offload stakes amounting to Rs677.58cr through the IPO.

The IPO is a 100% book building and has a price band of Rs166 to Rs175 per equity share. Bid lot size includes 85 Equity Shares and in multiples thereof.

Under the IPO, 50% of the total portion is reserved for qualified institutional buyers, while 35% is kept for retail individual investors and the remaining 15% for non-institutional investors.

ICICI Securities, HDFC Bank and JM Financial are the book running lead managers for the IPO.

On Monday, the company garnered Rs204cr from anchor investors. Companies like Ashoka India Equity Investment Trust Plc, Kuber India Fund, Saint Capital Fund, IIFL Special Opportunities Fund, Abakkus Growth Fund, HDFC Mutual Fund (MF), Nippon India MF and Quant MF were some of the investors.

AGS Transact Technologies is one of the largest integrated Omni-channel payment solutions providers in India in terms of providing digital and cash-based solutions to banks and corporate clients. The company provides customised products and services comprising ATM and Cash Recycler Machines (CRM) outsourcing, cash management and digital payment solutions including merchant solutions, transaction processing services and mobile wallets.

In fiscal 2021, GS Transact was India’s second-largest ATM managed service company with a  15.5%  market share in terms of revenues with  32,367  ATMs managed under the outsourcing model. Further, in this financial year, AGS  Transact was  India’s second-largest cash management company with a  30%  market share in terms of the number of  ATMs replenished and approximately 26% market share in terms of revenues from the ATM replenishment segment.

For the financial years 2021, 2020 and 2019, the company has derived 95.6%, 95.5% and 96.1%, respectively, of our revenues from operations in India where our business started, although it has expanded internationally to offer automation and payment solutions to banks and financial institutions in other Asian countries comprising Sri Lanka, Singapore, Cambodia, Philippines and Indonesia.