AGS Transact Technologies IPO — All you need to know

Blog | IPO

If queues at your nearest petrol station have become shorter, it is very likely that it’s due to this omni-channel payment solution provider - AGS Transact Technologies. It is one the largest deployer of point-of-sale (POS) terminals at petroleum outlets in India and around 22% of fuel retail outlets in India use its POS services. 

Its core services consist of end-to-end management of ATM and cash recycler machines (CRM) - from deployment to maintenance. The company also provides digital and cash-based solutions to banks and corporate clients including some of the leading paint and retail companies. 

From dispensing paint colours, bills to even cash, the company provides tech-based solutions to multiple industries and is now looking to tap the primary market.

Offer details

  • Start date: 19 Jan 2022
  • End date:  21 Jan 2022
  • Price band: ₹166–₹175 per share
  • Minimum investment: ₹14,875
  • IPO size: ₹680 crore

Timeline

  • Allotment: 27 Jan 2022
  • Refund: 28 Jan 2022
  • Credit of equity shares: 31 Jan 2022
  • Listing: 1 Feb 2022

All about the IPO 

The founder and chairman of AGS Transact Technologies, Ravi Goyal, began his entrepreneurial journey in 1997 by starting a colour matching dispenser company. 

He recollects that in 2002, people used to call them the ‘king of dispensing systems’. This led him to think that if they’re not dispensing cash, they really cannot be the dispensing kings. And so, AGS Transact Technologies forayed into the finance industry.

Since then, the company has come a long way. Today, AGS Transact Technologies is India’s second largest company for ATM managed services.  The company has installed, maintained or managed a network of approximately 72,000 ATMs and CRMs.

Its operations cover approximately 2,200 cities and towns, including retail and corporate outlets and oil marketing companies. The company’s three business verticals are payments solutions, banking automation solutions and other automation solutions (for petroleum and colour industry). 

Financials

Revenue: -1.3%; Net Profit: -8.7% (FY19-21 CAGR)

Strengths

  • Held 15.5% market share in India’s ATM managed services space in FY21 
  • Second largest cash management company with 30% market share in ATM replenishment
  • Offers customized payment solutions such as voice-guided ATM and automated retail cash pick-ups
  • Has a marquee customer base including ICICI Bank, HDFC Bank, Axis Bank, Kansai Nerolac Paints and IOCL

Risks

  • Reluctance to use cash during the pandemic and rapid adoption of digital payments in India 
  • Skewed income base as 68% (in FY21) of the revenue comes from the banking sector
  • Operates in a highly regulated industry 
  • Any changes in the interchange fee, which is charged by one bank for usage of another bank’s ATM card on its ATM machines 

Good to know 

Despite the rapid adoption of digital payments, cash is still king in India. The revenue from cash management services is expected to grow at a CAGR of 13% between FY21 and FY26. Being one of the large players in this space, AGS Transact Technologies could benefit from the growth.  

 

FAQs

How can you pre-apply for AGS Transact Technologies’ IPO? 

Pre-applying for AGS Transact Technologies’ IPO means applying for this public issue before it goes live. Click here and follow these steps to pre-apply for AGS Transact Technologies’ IPO on Upstox. 

When does pre-apply for AGS Transact Technologies’ IPO open and how can you pay for it?

You can pre-apply for AGS Transact Technologies’ IPO from 17 January 2022. Once the IPO goes live, you will receive a UPI mandate. Accept this to block the IPO application amount and successfully place your bid.

How can you apply for AGS Transact Technologies’ IPO? 

Click here to apply for AGS Transact Technologies’ IPO on Upstox. You can also download our app. Then click here and follow these steps. 

When does AGS Transact Technologies’ IPO open and close for the subscription? 

AGS Transact Technologies’ IPO is open for subscription between 19 January 2022 and 21 January 2022. 

What’s the lot size and minimum investment needed for AGS Transact Technologies’ IPO? 

The lot size for AGS Transact Technologies’ IPO is 85 shares and the minimum investment required is ₹14,875. 

What is the price band for AGS Transact Technologies’ IPO?

The price band for AGS Transact Technologies’ IPO is ₹166-₹175 per share.  

What’s the size of AGS Transact Technologies’ IPO?

The size of AGS Transact Technologies’ IPO is ₹680 crore. 

How many bids can I place for AGS Transact Technologies’ IPO? 

You can place up to three bids for an application. 

Can these bids be placed at different times during the IPO subscription period?

No, the bids have to be placed at one go. If you want to add an additional bid, then you would have to delete your application and re-apply. 

When will AGS Transact Technologies’ shares be credited to your demat account? 

If the shares are allotted, then they will be credited to your demat account on 31 January 2022. Click here and follow the steps to check the allotment status. 

Which exchanges will AGS Transact Technologies list on?

Shares of AGS Transact Technologies will list on BSE and NSE.

When will AGS Transact Technologies list on the exchanges? 

Shares of AGS Transact Technologies will list on 1 February 2022  

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