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AGS Transact Tech Files DRHP with SEBI to Raise Rs. 800 Crores via IPO

05 August 20224 mins read by Angel One
AGS Transact Tech Files DRHP with SEBI to Raise Rs. 800 Crores via IPO
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Renowned payment solutions provider AGS Transact Tech is planning an IPO of nearly Rs. 800 crores through an offer for sale by the selling shareholders. The company has already filed its DRHP with the market regulator SEBI on 20th August 2021.

Want to know more about this upcoming IPO?

Keep reading!

A Closer Look at the AGS Transact Tech IPO

According to the DRHP, this IPO is a pure offer for sale equity shares by selling shareholders and promoters. Here are a few takeaways from the recent DRHP filing by the company:

  • Ravi B Goyal – promoter selling shareholder – will make the offer for sale – aggregating a sum of up to Rs. 792 crores. It will also consist of other selling shareholders aggregating a sum of up to Rs. 8 crores.
  • Collectively, the selling shareholders own 55.33% of the pre-offer share capital of AGS Transact Tech.

Previously, AGS Transact tech has made various attempts to go public. For instance, in 2015, it filed DRHP with the market regulatory body to raise Rs. 1350 crores. Furthermore, it also approached SEBI with its DRHP to raise Rs. 1000 crores through an IPO in 2018. Although AGS Transact Tech received SEBI’s nod, it did not proceed with its IPO plan.

Wondering why you should consider investing in this upcoming IPO?

Start by knowing all about the company.

AGS Transact Tech – Financials and Market Significance

AGS Transact Tech provides customised products and services that comprise cash management, and CRM and ATM outsourcing. The company also offers digital payments solutions, including merchant solutions, mobile wallets, and transaction processing services.

The company repeatedly ranks as one of the top companies in India providing ATM managed services. As of March 2021 (Ken ATM Report), it ranked as the second-largest company in the country in terms of –

  • Revenue generation from cash management and ATM replenishment
  • Revenue from ATM managed services derived from an outsourcing model

However, the financials of the company in the past three years have not been quite impressive. Let us have a look at the below table:

Particulars FY 2019 FY 2020 FY 2021
Revenue (in Million) Rs. 18,236.30 Rs. 18,335.26 Rs. 17,971.52
Profit after Tax (in Million) Rs. 661.94 Rs. 830.14 Rs. 547.92

But don’t let the financials intimidate you.

AGS Transact Tech actively deployed over 2.07 lakh payment terminals in 2021. It was one of the largest POS deployers at petroleum outlets in India. It also serves various industries such as banking, petroleum, retail, toll, fintech, and cash management solution providers in India.

Final Takeaway

An integrated omnichannel payment solutions provider in India, AGS Transact Tech is continually evolving to provide cash and digital solutions to corporates and banks.

Furthermore, AGS Transact Tech has wide market significance and holds the capacity to undergo further developments in the coming years; this IPO is just a step forward to achieve its goals.

Regardless, those planning to invest in this upcoming public offer should do so after analysing the prospects and limitations of the company, in general.


Frequently Asked Questions

  1. What is the face value of AGS Transact Tech shares?

The IPO will consist of equity shares with a face value of Rs. 10 each.

  1. Where will AGS Transact Tech list its shares?

Equity shares of the company will be listed on both BSE and NSE.

  1. Who are the lead managers to this IPO issue?

Lead managers to the issue are ICICI Securities, JM Financial, and HDFC Bank.


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