Key Points to Know Before Applying to AGS Transact Technolog


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  • January 15, 2022 – Key factors to know earlier than making use of for IPO of AGS Transit Applied sciences

January 15, 2022

The yr 2021 was a file breaking yr for the Indian main market.

63 firms entered the market and raised Rs. 1.2 Tn collected, the very best in a calendar yr.

The identical could be stated for 2022, as many firms have lined as much as increase capital by IPOs within the coming months.

AGS Transact Applied sciences, one of many largest omnichannel cost options suppliers, will launch the 2022 IPO season.

The primary mainboard public situation of the yr will open on 19 January 2022 and shut on 21 January 2022.

The corporate had earlier made a number of makes an attempt to go public. Earlier in 2018, AGS Transit Tech raised Rs. The regulator had filed a draft paper to boost Rs 10 billion. It additionally protected the regulator from shifting ahead however didn’t transfer ahead with the plan.

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The value band has been mounted at Rs 166-175 per share. The difficulty measurement of the provide is Rs. 6.8 billion, up from the earlier Rs. The cut-back is estimated at 8 billion.

Bidding for Anchor Traders will open on 18 January 2022 and situation will finish on 21 January 2022.

ICICI is the Ebook-Operating Lead Supervisor for Securities, HDFC Financial institution and JM Monetary Points.

AGS Transact Applied sciences IPO Particulars

Kind of downside Ebook Constructed Challenge IPO
Face worth Rs. 1
IPO value Rs. 166 to Rs. 175
Market lot 1 lot – 85 shares
Challenge measurement Rs. 6.8 billion
Supply on the market Rs. 6.8 billion
Primarily based on the date of allotment Thursday, January 27, 2022
IPO itemizing date Tuesday, February 1, 2022

Knowledge supply: Firm’s purple herring prospectus (RHP)

Promoter’s stake within the firm

A public situation is a proposal of mere sale of fairness shares (OFS) by the promoter and different promoting shareholders.

The promoters of the corporate are Ravi B Goyal and Vineha Enterprises. Collectively they maintain 97.61% stake within the firm. The shareholding of AGS Transact Workers Welfare Belief is 1.51%.

After itemizing, the promoter’s stake within the firm will probably be diminished to 66.07%.

Reserved half by class

As much as 50% of the web situation is reserved for Certified Institutional Patrons (QIBs), whereas Non-Institutional Patrons will probably be allotted 15% shares for them.

Retail’s share is decided at 35% of the web provide. Retail buyers should pay a minimal of Rs. 14,875 and their most funding for 13 heaps is Rs. Might be 193,375.

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Use of internet earnings

A public provide is simply an OFS of fairness shares by a promoter. As a part of OFS, promoter Ravi B Goyal paid Rs. Will promote as much as 6.8 billion shares.

The corporate is not going to obtain any proceeds from the sale of the problem.

A quick understanding of the corporate

AGS Transact Applied sciences is likely one of the main omni-channel cost resolution suppliers in India.

It’s the second largest firm in India by way of income from ATM operated companies and likewise the most important provider of Level of Sale (POS) terminals at petroleum shops in India.

It expands not solely to the Indian market but in addition internationally to different Asian nations, together with Sri Lanka, Cambodia, Singapore, Indonesia and the Philippines.

The agency operates primarily in 3 enterprise segments

  • Cost Resolution: ATMs and Money Recycling Machines (CRMs) present companies like outsourcing, money administration companies, digital cost options, transaction switching companies, POS machine companies, company banking and many others. As of 31 August 2021, it has a portfolio of 14,099 ATMs and CRMs. Underneath outsourcing.
  • Banking Automation Options: It sells ATMs and CRMs, self-service terminals, foreign money expertise merchandise and associated companies. As of thirty first August 2021, AGS Transact has 50+ banking buyer base i.e. ICICI Financial institution, Axis Financial institution and HDFC Financial institution.
  • Different automation options: It’s for purchasers within the petroleum, retail and shade segments resembling system automation merchandise, system integration, distant administration and different service choices.

As of August 31, 2021, it has put in 2,21,066 business POS, 17,924 petroleum shops, 72,000 ATMs and CRMs, money administration companies, 46,800 money billing terminals and 88,521 shade meting out machines. The enterprise serves prospects in 2,200 cities and cities by 4.5 lakh machines or buyer contact factors.

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A fast have a look at the corporate’s funds

AGS Transact Applied sciences has carried out nicely financially. The corporate has invested Rs. 547.9 million.

For the five-month interval ended August 31, the corporate misplaced Rs. Reported a internet lack of 181.1 m.

Throughout the identical interval, the corporate’s complete income stood at Rs. 7.6 billion, whereas for the monetary yr 2021, the entire income of AGS Transact was Rs. Was 18 billion.

Major parameters

(Rs. M) FY19 Fiscal yr 20 FY21 Aug-21
Whole earnings Held at 18,236 18,335.3 17,971.5 7,623.0
Progress (%) 0.5% -2%
Prices 13,807.6 13,380.7 13,203.9 5,682.4
Web revenue loss 661.9 830 548 -181.1

Knowledge supply: Firm’s RHP
For extra particulars, take a look at the Pink Herring Prospectus of AGS Transact Applied sciences.

Future prospects

By way of income, the Indian ATM operated companies market is anticipated to publish a constructive compound annual development charge (CAGR) of round 6.7% throughout 2018-2023.

Money administration companies together with ATM restore and upkeep are anticipated to have a constructive influence on the general income era for India’s ATM operated companies market.

The Indian digital funds business is anticipated to succeed in US $ 700 billion by 2022 by way of transaction worth. It’s anticipated that greater than 80% of the city inhabitants in India will undertake digital funds as their common half by 2022, and 70% of retail chains will undertake it.

This can be a good factor for the corporate.

Aggressive powers

  • Buyer based mostly portfolio with sturdy capabilities for growing in-house personalized options.
  • Lengthy-standing relationships with expertise suppliers and prospects.
  • Devoted in-house infrastructure and technical capabilities.
  • Main omni-channel built-in cost and money options supplier.
  • Skilled Board of Administrators and Senior Administration.
  • A various product portfolio, buyer base and income streams result in cross-selling alternatives.

Main IPO danger

  • A small variety of prospects account for a big share of their income.
  • There have been some unfavourable penalties for the epidemic enterprise, and it may proceed.
  • It’s engaged in payment based mostly actions. If the corporate is unable to generate income from these actions, it should have a unfavourable influence on the enterprise.
  • Not utilizing money as a cost technique can have a unfavourable influence on the corporate.
  • Delays or defaults in any cost by the shopper can result in a discount of their income.
  • The sector is closely regulated by the central financial institution and different authorities businesses.

What’s the best IPO technique to observe?

The IPO pipeline for the yr 2022 seems strong.

Many firms, together with Adani Wilmer, Go Airways, ESDS Software program, Scanner Know-how, Emcure Prescription drugs, Tracxn Applied sciences, Fusion Micro Finance, MobiKwik and plenty of others, have acquired approval from market regulators to maneuver ahead with their IPO plans.

Earlier than investing in any of those companies, buyers ought to keep away from falling into hype and as an alternative look at costs and fundamentals.

Should you recall, resulting from excessive valuations, fears of Omicron and tightening by the US Federal Reserve, the market grew to become turbulent within the final quarter of 2021, dropping greater than 11% from a file excessive.

Paytm, Metro Manufacturers, Star Well being, RatGen Journey and Shriram Properties all didn’t impress buyers resulting from overvaluation, earnings volatility and covid-related issues.

As firms line as much as increase funds from the market amid excessive valuations, buyers want to think about plenty of components earlier than investing their cash in an IPO.

If you’re investing in an IPO, think about all of the constructive and unfavourable components that have an effect on the corporate.

Take a better have a look at the corporate’s funds and valuations. It provides you with a transparent image of what’s brewing.

Blissful investing!

Disclaimer: This text is for informational functions solely. It isn’t a inventory advice and shouldn’t be handled this manner. Study extra about our really useful companies right here …

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