AGS IPO to open this week, check out the details:

In this week, First IPO of year is lined up to open for subscription in the primary market. AGS Transact Technologies is on track to be the first mainboard IPO of 2022, with the company planning to launch its initial stake offer on January 19th.

AGS Transact Technologies:

AGS Transact Technologies Ltd is a leading provider of omni-channel payment solutions in India. It is India’s second largest company in terms of revenue from ATM managed services, as well as the country’s largest deployer of POS terminals at petroleum outlets. It not only serves the Indian market but has also expanded into other Asian countries such as Sri Lanka, Cambodia, Singapore, Indonesia, and the Philippines.

Its primary business segments are payment solutions, banking automation solutions, and other automation solutions. It is India’s second-largest company in terms of revenue from ATM managed services, as well as the country’s largest deployer of POS terminals at petroleum outlets.

It had installed a network of 221,066 merchant POS, 17,924 petroleum outlets, 72,000 ATMs and CRMs offering cash management services, 46,800 cash billing terminals, and 88,521 colour dispensing machines as of August 31, 2021. Through 446,000 machines or customer touch points, the company serves customers in 2200 cities and towns.

When:

The AGS Transact IPO opens on January 19, 2022, and closes on January 21, 2022. The issue could be listed on February 1, 2022.

• Fresh Issue: 680 Cr
• Offer for sale: 680 crore.
• Price band: Rs 166 to 175 per equity share per equity share.
• Market value at the upper end of the price band: crore
• Face value: Rs 10 apiece.
• Lot size: 85 shares and multiples
• Listing: NSE and BSE.
• Listing Date: February 1
• Lead managers:
• Promoters:

HDFC Bank Limited, ICICI Securities Limited, JM Financial Consultants Private Limited are the lead promoters.

• Registrar: Link Intime India Private Ltd

Objectives of the IPO:

The company aims to utilize the funds for following purpose:

• To carry out an offer for sale by selling shareholders.
• To realize the listing benefits of equity shares on the stock exchange.
• Meet general corporate purposes.

Summary of Financial Information:

AGS earned Rs 54.79 crore in profit in FY21, down from Rs 83.01 crore the previous year, and revenue fell marginally to Rs 1,758.94 crore from Rs 1,800.44 crore in the same period. It reported a loss of Rs 18.1 crore on revenue of Rs 753.4 crore for the five months ending August 31, 2021.

“The last few IPO offers, such as Shriram Properties, Star Health, and Metro Brands, have debuted with disappointment due to stretched valuations.” Based on all parameters and assumptions, the AGS issue is fully priced, and subscription demand for its upcoming initial public offering is expected to be muted. As a result, we advise risk takers to consider an investment only in the long term,” said Prashant Tapse, Vice-President (Research) at Mehta Equities.

The company, which has been planning its initial public offering (IPO) since 2010, is finally entering the capital market with its OFS. The static top line for the last three fiscals, as well as losses incurred for the first five months of FY22, were major sources of concern. The issue is fully priced based on financial parameters. However, given the segment’s bright future prospects, cash surplus/risk seekers may want to consider a long-term investment.