AGS Transact IPO Review with the IPO being the first to hit the Indian Market for CY22 may be applied with the IPO under all financial parameters is fully priced. The issue dates have been finalized and the initial public offering (IPO) size has been reduced to Rs 680 crore from Rs 800 planned earlier last August. The first IPO issue of the year will open tomorrow on January 19th and close on January 21st.
The company that has been planning its IPO since 2010, finally entering the market with its offer for sale tomorrow. With losses for FY22 and a static top line for the last three fiscals. Short-term investors can ignore considering the market conditions, valuations, and a less IPO frenzy scenario recently. However risky investors may consider an investment with a long-term perspective. With a declining GMP day by day, short-term retail investors have a risk in opting for the IPO as of now
AGS Transact with an issue worth Rs. 680 cr which is completely a book-built issue opens tomorrow. The company has fixed the price band of Rs. 166 – Rs. 175 for this issue. The issue opens for subscription on January 19th, 2022, and will close on January 21st, 2022. The minimum application is to be made for a single lot or 85 shares and a maximum of 13 lots. Post allotment, shares will be listed on BSE and NSE. The company has allocated 50% for QIBs, 15% for NIIs, and 35% for retail investors.
The issue will entirely be an offer for sale (OFS) wherein the promoter Ravi B Goyal will sell shares worth up to Rs 677.58 crore which was earlier planned to be Rs 800 crore.
AGS Transact Technologies Ltd is one of India’s leading payment solution providers. It is the second-largest company in India in terms of revenue from ATM managed services. It is the largest deployer of POS terminals at petroleum outlets in India.
Apart from the Indian market, AGS Transact Technologies has its impact internationally in countries like Sri Lanka, Cambodia, Indonesia, Singapore, and the Philippines. The company operates in segments like Payment Solutions Services, Banking Automation Solutions, and Other Automation Solutions for customers in petroleum, retail, and color segments.
AGS Transact Technologies operations include an installed network of more than 207,400 merchant POS, 16,700 petroleum outlets, 72,000 ATMs, and CRMs. It is expanded in 2200 cities and towns through 420,000 machines. It has its listed peer in CMS Info Systems which got listed recently.
The net proceeds from the issue will be utilized to carry out an offer for sale by selling shareholders. One more objective for the issue is to get the listing benefits of equity shares on the stock exchange and general corporate uses.
Ravi B. Goyal and Vineha Enterprises Pvt Ltd are the promoters of AGS Transact Technologies IPO.