AGS Transact Technologies Ltd, to hit the primary market, to raise Rs680 Crores.

AGS transact technology is one of the largest integrated Omni-channel payment solutions providers in India in terms of providing digital and cash-based solutions to banks and corporate clients. As of March 31, 2021, Company is the second-largest company in India in terms of (i) revenue from ATM managed services under the outsourcing model, and (ii) revenue from cash management and the number of ATMs replenished. The Firm provides customized products and services comprising ATM and CRM outsourcing, cash management, and digital payment solutions including merchant solutions, transaction processing services, and mobile wallets.

 The payment service provider is all set to hit the primary market with its IPO to raise Rs680 crores consisting of an entirely offer for sale, maiden public offering. Important information related to the AGS transact Technology IPO are as follows:

Issue Open Date19-Jan-22
Issue Close Date21-Jan-22
Listing Date1-Feb-22
Allotment Date27-Jan-2022
Price BandRs166-Rs175
Minimum Lot Size85 shares
Min. InvestmentRs 14875
Max. InvestmentRs 193375

 With this complete offer for sale IPO company will not receive any proceed to form the same. However, the company’s only reason to list is To realize the listing benefits of equity shares on the stock exchange. HDFC Bank Limited, JM Financial Limited, ICICI Securities Limited are the book running lead managers and Link Intime India private limited is the registrar for the IPO.

Before the IPO opens its window for subscription, the firm has raised an amount of Rs 204 crore from 17 anchor investors, by selling 1,16,57,141 equity shares at Rs 175 per equity share.  AGS IPO is receiving an overwhelming response and is trading at Rs 195-196, 11.4% higher than its higher side of the price band in the grey market.  

The firm is one of a kind in the digital payment sector with no listed peer. The firm has been quite steady with its gross operating revenue. However, looking at the numbers of the income statement there has been a reduction of Rs 363.74 million in operating revenue to Rs  Rs17971.52 million in comparison to Rs 18335.26 million earned in FY2020.

With strong fundamentals and financial numbers, AGS transact technology can be a good bet for longer-term investment. However, investors must do their research, before making any investment in the market as an investment in the markets are subject to uncertainty and risks.


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