AGS Transact Technologies IPO - 7 Things to Know

AGS Transact Technologies, which had filed DRHP with SEBI for its proposed IPO has decided to reduce its IPO size to Rs.680 crore. The IPO will be entirely an offer for sale and here are some key points to note about the IPO.
 

7 Things to Know about AGS Transact Technologies IPO

1) The Rs.680 crore IPO of AGS Transact Technologies will comprise entirely of an offer for sale by existing shareholders to the tune of Rs.680 crore.

Out of the Rs.680 crore OFS, promoter Ravi Goyal will sell chunk of the OFS. He will sell a total of 387.19 lakh shares valued at Rs.677.58 crore at the upper price band of Rs.175.

2) The other five selling shareholders will only sell shares worth the balance Rs.2.42 crore between them. Since this is entirely an OFS, there will be no fresh funds coming into the company.

The purpose of the OFS is to get the company listed on the bourses to help realize valuations for using stock as currency in future.

3) The price band for the IPO has been fixed in the range of Rs.166 to Rs.175 per share. The market lot will comprise of 85 shares and retail investors can apply in minimum of 1 lot and maximum of 13 lots.

The maximum permissible investment in the retail quota of the IPO is Rs.193,375 crore. Post the OFS, promoter stake will fall from 98.23% to 66.07%.

4) AGS Transact Technologies IPO will open for subscription on 19-Jan 2022 and close for subscription on 21-Jan 2022. The basis of allotment will be finalized on 27-Jan while the refunds will be initiated to the bank accounts on 28-Jan.

The demat credits will happen by 31-Jan, while the stock is expected to list on the NSE and the BSE on 01-Feb. The company will allocate 50% to QIBs, 15% to HNIs and 35% to retail investors.

5) AGS Transact Technologies is a leading omni-channel payment solutions provider. It manages ATMs and POS terminals across India and is India’s second largest player in this particular business.

It broadly operates in 3 segments viz. payment solutions, banking automation solutions and retail automation solutions. Payment solutions accounts for a bulk of revenues at 76%.

6) For the fiscal year ended March 2021, AGS Transact Technologies reported YoY fall in revenues at Rs.1,797 crore. Net profits were also lower at Rs.54.79 crore in the quarter. This is a high volume and low margin business so net margins are by default very low, in the above case it is about 3%.

For the first half of FY22, the company has reported a net loss, due to pressures on business created by greater digitization.

7) The AGS Transact Technologies IPO will be lead managed by HDFC Bank, ICICI Securities and JM Financial Consultants, who will act as the book running lead managers to the issue. Link In Time Private Limited will be the registrar to the IPO.

Also Read:-

Upcoming IPOs in 2022

Upcoming IPOs in January 2022