IPO-Note AGS  Transact Technologies Limited
Rs-166-Rs175  per Equity share Recommendation: Avoid

AGS Transact Technologies Limited IPO Company Profile:

AGS Transact is a second largest ATM service providers and largest deployer of POS machine at petroleum outlets in India. They also have done international expansions in Sri Lanka, Cambodia, Indonesia, Singapore and Philippines. The company basically deals in three segment-

Payment Solution services such as cash management services, ATM outsourcing service, digital payment solutions, transaction switching services, POS machine services, agency banking, etc. It has a portfolio of 14,099 ATMs and CRMs under outsourcing and 19,161. It has also deployed POS terminals at leading Indian petroleum outlets such as Hindustan Petroleum, Indian Oil Corporation while Dr. Lal Pathlabs, Patanjali Ayurved.

Banking Automation Solutions – As of August 31, 2021, AGS Transact has 50+ banking customer base i.e. ICICI Bank. Axis Bank, and HDFC Bank Ltd.

Other Automation Solutions They have customer in the field of petroleum, retail, and colour segments such as system automation products, system integration.


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    AGS Transact Technologies Limited IPO Details – 

    Issue Details
    Objects of the issue  ·  To achieve benefit of listing the Equity share on the stock Exchange

    ·   carry out the offer for sale by the Selling Shareholders

    Issue Size Total issue Size – Rs.680 Cr.
    Face value Rs.10.00 Per Equity Share
    Issue Price Rs. 166 – Rs.175
    Bid Lot 85 shares
    Listing at  BSE, NSE
    Issue Opens: 19th Jan, 2021 – 21st Jan, 2021
    QIB 50% of Net Issue Offer
    Retail 35% of Net Issue Offer
    NIB 15% of Net Issue Offer


                         AGS Transact Technologies Limited IPO

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    AGS Transact Technologies Limited IPO Strengths:

    • Company has a good product mix, and has a diversified client mix
    • AGS Transact has a Long-standing relationship with global technology providers companies like Diebold Nixdorf, ACI.
    • The Company has a strong in house technologies capabilities.


    Check  AGS Transact Technologies Limited IPOAllotment Status

    Go  AGS Transact Technologies Limited IPO allotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.

    One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-

    1. To  AGS Transact Technologies Limited IPO Allotment Status
    2. Go to Application Status
    3. Select IPO as  AGS Transact Technologies Limited IPO
    4. Enter your PAN Number or Application Id or DP Client Id.


     AGS Transact Technologies Limited IPO

    Application Form

    AGS Transact Technologies Limited IPO Financial Performance:

    AGS-Transact-Technologies-Limited -IPO-Financial-Performance

    AGS Transact Technologies Limited IPO Shareholding Pattern:

    Shareholding Pattern Pre- Issue Post Issue
    Promoters & Promoter Group 98.23%     66.07%
    Public  1.77% 33.93%

    AGS Transact Technologies Limited IPO Key Highlights:

      • Revenue from operations saw a degrowth at a CAGR of -1.30% from FY18-21 and profit degrowth at a CAGR of 8% from FY 18-21.
    • PAT Margin have deteriorated from 4.6% in FY20 to 3.7% in FY21.

    • As on August 2021 gross debt of the company is ₹ 1654.49 crore.

    • As on March 2021 cash flow from operating Activity was ₹ 417.5 crores.

    • In terms of revenue 2021, 40.9% Revenue Company come from ATM site Management, 28.8% from cash Management Services and 9.8% from ATM Supply.

    • It had installed a network of 221,066merchant POS, 17,924 petroleum outlets, 72,000 ATMs and CRMs offering cash management services, 46,800 cash billing terminals, and installed 88,521 colour dispensing machines


    AGS Transact Technologies Limited IPO Risk Factors:

    • Substantial Revenue of the company come from ICICI Bank and Axis Bank, so any deterioration of their business can have negative impact of this company.

    • As UPI use is increasing in India this will have an impact of this company as cash use is decreasing.

    • The company is in highly regulated sector by RBI and other government agencies.

    • Gross Debt of the company is ₹ 1654 crore which is very high.

    • Since this is an OFS so no capital is coming to the company

    AGS Transact Technologies Limited IPO Outlook:

    AGS Transact Technologies is one of the leading integrated Omni-channel payment and cash solution provider, they have well diversified business model with diversified customer base. They also have strong technology background AGS had installed 221066 merchant POS, 17924 petroleum outlets, 72000 ATMs and CRMs in India. This company is present in 2200 cities, Company revenue and PAT has shown a degrowth in last three year and in first five month of 2021 they reported loss. It will be trading at a P/E of 38.46x on higher price band which is in line with others peer, since the company is degrowing for last three year and there is no uniqueness in their business we recommend AVOID rating to this IPO.

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