AGS Transact Technologies’ IPO will open for subscription on Wednesday, ending the nearly one-month draught in primary markets. The Rs 680 crore IPO is entirely an offer for sale (OFS) by existing shareholders of the company, including the Promoter of the company Ravi B Goyal. Ahead of the IPO, shares of AGS Transact Technologies were trading at a premium of Rs 21 per share above the issue price of Rs 166-175 per share. In 2022 Dalal Street is expected to see a large number of IPOs and possibly the biggest public issue to ever hit markets– Life Insurance Corporation of India (LIC).
About the issue
AGS Transact Technologies IPO will open on Wednesday, January 19 and will remain open for subscription till January 21. Shares of the company have been offered in the fixed price band of Rs 166-175 per share to investors. A single lot will consist of 85 shares of AGS Transact Technologies, translating to a minimum investment of Rs 15,045 per investor. Being entirely an Offer for Sale (OFS) the IPO will not see AGS Transact get any of the proceeds. The promoters of the company will trim their stake by around 32% through the IPO with Ravi B Goyal selling 3.8 crore equity shares worth Rs 677 crore. Post issue, public shareholding will increase to 33.26% from the current 1.1%.
Half of the entire IPO is reserved for qualified institutional buyers (QIB). At the upper end of the price band, 19,428 shares are reserved for QIB. Retail investors can bid for 35% of the entire issue or 13,600 shares. Non-Institutional Investors (NII) can bid for 15% of the entire IPO.
AGS Transact Technologies
AGS Transact, incorporated in December of 2002, is one of the largest integrated omnichannel payment solutions providers in India in terms of providing digital and cash-based solutions to banks and corporate clients, as of March 31, 2021. The company operates their business in the following segments, Payment Solutions; Banking Automation Solutions; Other Automation Solutions (for customers in the retail, petroleum and color sectors). AGS has expanded internationally to offer automation and payment solutions to banks and financial institutions in other Asian countries comprising Sri Lanka, Singapore, Cambodia, the Philippines and Indonesia.
Financial performance
The company reported a revenue of Rs 1,805 crore in the financial year ending March 2019, which was down at Rs 1,759 crore at the end of the previous fiscal year. Net profit of the company has decreased from Rs 66.19 crore in the financial year 2018-19 to Rs 54.79 crore at the end of the last quarter.
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