AGS Transact Tech IPO: Investors will have to invest at least Rs 14875 in the IPO of AGS Transact Technologies, a company providing payment related services.
AGS Transact Tech IPO: The IPO of AGS Transact Technologies, a company providing payment related services, has opened today (January 19). With this IPO, the drought of almost a month in the primary market of the country has ended. Investors will be able to invest money in this IPO of Rs 680 crore till January 21. According to the upper price of the fixed price band for the issue, investors will have to invest at least Rs 14875 in it. It is the second largest company in the country in terms of revenue from ATM related services and the largest company to install POS terminals at petrol pumps. Market experts have a positive attitude about investing money in this and have given a subscribe rating to this issue.
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AGS Transact Tech IPO Details
- AGS Transactions IPO of Rs 680 crore has opened today and investors will be able to invest in it till January 21.
- For this issue, the company has fixed a price band of Rs 166-175 per share.
- The lot size has been fixed for 85 shares i.e. investors will have to invest at least Rs 14875 according to the upper price of the price band.
- The face value per share is Rs 10.
- Under this issue, no new shares will be issued, but the existing promoters and other shareholders of the company will sell some of their stake under Offer for Sale (OFS). Under the OFS, the promoter of the company, Ravi B Goyal, will sell shares worth Rs 677.58 crore. Earlier, he wanted to sell shares worth Rs 792 crore.
- 50 per cent of the issue has been reserved for Qualified Institutional Investors (QIBs), 35 per cent for retail investors and 15 per cent for non-institutional investors.
- The allotment of shares may be final on January 27 and its listing may happen on February 1.
- ICICI Securities, HDFC Bank and JM Financial are the lead managers of the issue. The equity shares of the company will be listed on BSE and NSE.
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Experts gave rating of subscribe
- According to the financials of FY 2021, this IPO is at 6x EV/EBITDA and 1.5x EV/sales price.
- The company’s focus will continue to be on developing customized in-house solutions, in-house infrastructure and technological capabilities and has a long standing business relationship with technical services providers.
- With a diversified product portfolio, large customer base and track record, the company can capitalize on cross-selling opportunities and develop integrated payment solutions and technology.
- In the petroleum sector, AGS has integrated POS terminals with fuel automation solutions, through which sales volume and payment transaction data are easily accessible to merchants.
- The company is expanding its business in Sri Lanka, Singapore, Cambodia, Philippines and Indonesia.
- Market leadership in ATM managed services and cash management with healthy margins and high return ratio, strong industry growth and discount valuation against peers has led brokerage firm Reliance Securities to give a subscribe rating with a positive view to the issue.
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Company related details
- AGS is the country’s leading provider of integrated omni-channel payment solutions across transactions.
- In terms of revenue from ATM services, it is the second largest company in the country and the largest company to install POS terminals at petrol pumps.
- Its business is spread not only in India but also in Asian countries like Sri Lanka, Cambodia, Indonesia and Philippines.
- The company mainly deals in three business segments – Payment Solutions, Banking Automation Solutions and Other Automation Solutions.
- As of 31 August 2021, the company has installed 2,21,066 merchant POS, 17,924 petroleum outlets, 72 thousand ATMs and CRMs, 461800 cash billing terminals, 88,521 color dispensing machines. Its business is through 4.46 lakh machines or customer touch points in 2200 cities and towns.
- Talking about the financial condition of the company, the net profit (Profit after Tax) of the company has decreased. In the financial year 2020, the company’s net profit was Rs 83.01 crore, while in the next financial year 2021, its net profit came down to Rs 54.79 crore.
(The stock recommendations given in the story are those of the respective research analyst and brokerage firm. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)
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