AGS Transact, integrated in December of 2002, is one of the leading integrated omnichannel payment solutions providers in India. The company is providing digital and cash-based solutions to banks and corporate clients, as of March 31, 2021. AGS is the second largest company in India in terms of revenue from ATM managed services and the largest deployer of POS terminals at petroleum outlets in India.
Besides Sri Lanka, Singapore, Cambodia, the Philippines, and Indonesia, AGS now offers automation, and payment solutions to banks, and financial institutions in other Asian countries. The company is operating its business in the following segments, Payment Solutions, Banking Automation Solutions, Other Automation Solutions (for customers in the retail, petroleum, and color sectors).
AGS Payment Solution services:
The company provides the payment solution services like ATM and CRM outsourcing, cash management services, digital payment solutions, transaction switching services, POS machine services, agency banking, etc. According to the company, as of August 31, 2021, it has a portfolio of 14,099 ATMs and CRMs under outsourcing, and 19,161 ATMs and CRMs under managed services. In addition to POS terminals, it has installed POS terminals at leading Indian petroleum outlets like Hindustan Petroleum and Indian Oil Corporation as well as corporate clients like Dr. Lal Pathlabs, Patanjali Ayurveda, RJ Corp Ltd, VRIPL Retail Pvt. Ltd., Organic India.
AGS Banking Automation Solutions & Partnered Banks:
AGS provides business services in the Sale of ATM and CRM, self-service terminals, currency technology products, and relevant services. As of August 31, 2021, AGS Transact has a 50+ banking customer base like ICICI Bank, Axis Bank, and HDFC Bank Ltd.
AGS Other Automation Solutions:
The company provides services in petroleum, retail, and color segments such as system automation products, system integration, remote management, and other service offerings. The company had installed a network of 221,066 merchant POS, 17,924 petroleum outlets, 72,000 ATMs and CRMs offering cash management services, 46,800 cash billing terminals, and installed 88,521 color dispensing machines as of August 31, 2021. The company serves customers in 2200 cities & towns through 446,000 machines or customer touchpoints.
AGS Financial performance:
AGS Transact has reported a revenue of INR 1,805 crore in the financial year ending March 2019, which was down at INR 1,759 crore at the end of the previous financial year. The net profit of the company has decreased from INR 66.19 crore in the financial year 2018-19 to INR 54.79 crore at the end of the last quarter in FY21. It reported a loss of INR 18.1 crore on revenues of INR 753.4 crore for the five months ended August 31, 2021.
AGS Transact Bonus Points & Key Strength:
AGS Transact is one of the largest integrated omnichannel payment solutions providers in India. The company provides digital & cash-based solutions to banks and corporate clients. Providing customized in-house solutions including voice-guided ATM and CRM software and biometric solution for banking clients. The service has approximately 446,000 customers, covering 2200 cities and towns through 34 branch offices,475 vaults, and spoke locations. Agreement with Diebold Nixdorf and long-standing relationship with other global technology providers.
AGS Transact Key Risk Factors:
Revenue is generated from a limited number of customers. Decrease the use of cash as a mode of payment could harm the company business, results of operation, cash flows, and financial condition. The company will not directly receive any proceeds from the offer for sale. The company has negative cash flows concerning its investing and financing activities in recent financial periods. Any unfortunate development or discontinuance of the relationship with Diebold Nixdorf could have an adverse effect.
AGS Transact Technologies IPO All Details:
As part of the IPO, existing shareholders including the Promoter of the company Ravi B Goyal, are offering to sell all of their shares at INR 680 crore. The company is going to raise aggregating up to INR 680 crore through its fresh issue which is completely offered for sale and all the money, Selling shareholders, including promoters, will receive proceeds after deducting issue costs.
Price Band of AGS Transact Technologies IPO:
The company has been fixed the price band of the book-built issue is INR 166-175 of each equity share.
The IPO opening & closing date:
The IPO will open for subscription on 19th January 2022 and will close on 21st January 2022.
Face Value & Lot Size of the IPO:
The face value of the IPO is INR 10 for each equity share. The investors will be able to apply a minimum of one lot and it will comprise 85 shares. The maximum limit to apply is 13 lots.
Investment Limit of the IPO:
The minimum investment allowed in this IPO is INR 14,875 (175x85), whereas the maximum investment limit is capped at INR 193,375[(175x85) x13].
IPO Allotment Date:
The allotment date of AGS Transact IPO is expected on the 27th of January 2022. And the shares will be a credit to the Demat account on the 31st of January for lucky investors.
Initiation of Refund:
The refund will be initiated in your account on the 28th of January 2022 for the unsuccessful investors.
IPO Listing Date:
The shares of AGS Transact Technologies will be listed on both NSE & BSE and likely the listing date is 1st February 2022.
Here How to Check Share Allotment Online:
The allotment can be checked on the BSE Website.
Select equity share (AGS Transact Technologies Ltd.)
Enter application no. and PAN no.
Finally check the box (I’m not a robot) and click on search
AGS Transact Technologies IPO Apply or avoid?
AGS Transact claimed to be one of the largest integrated Omni-channel payment solutions providers in India in terms of digital and cash-based solutions for banks and corporate clients, as of March 31, 2021. Providers of tailored products and services include ATM, customer relationship management, cash management, and digital payment solutions, such as merchant solutions, transaction processing, and mobile wallets.
AGS Transact has re-priced its offer very well with reduced offer valuations considering the market scenario and investor sentiments but we see a few points of concern with 100 percent offer-for-sale followed by losses on books incurred in the last five months of FY22 and flat growth in the top line.
The last few IPOs like Shriram Properties, Star Health, Metro Brands were listed on both NSE, and BSE with disappointment due to stretched valuations. "Based on all parameters and assumptions, the AGS issue is fully priced and expects muted subscription demands to its upcoming IPO". So, as per market experts, the risk-takers may consider an investment only with a long-term perspective. So think about it before investing the money in the stock market.