Table of Contents
- AGS Transact Technologies introduction
- What are the risk factors in AGS Transact Technologies IPO?
- What are the competitive strengths of AGS Transact Technologies IPO?
- What are the strategies Company follow towards their growth?
- What is AGS Transact Technologies Limited’s business model?
- Who are the promoter’s of AGS Transact Technologies Limited?
- How are the Company Financials?
- What are the objects of AGS Transact Technologies IPO net proceeds?
- AGS Transact Technologies IPO open & close date
- AGS Transact Technologies IPO allotment, refund & listing date
- AGS Transact Tech IPO allotment status
- AGS Transact Technologies IPO GMP (Grey Market Price) today
- AGS Transact Technologies IPO details, price band, & RHP
- AGS Transact Technologies IPO live subscription status
- AGS Transact Technologies IPO valuation (Overpriced or not?)
- AGS Transact Technologies IPO is good or bad? (review)
AGS Transact Technologies introduction
AGS Transact Technologies Limited is the largest Omnichannel payment services provider in India in terms of providing digital and cash-based solutions to bank and corporate clients, Also the company has reputed financial institutions and banks as customers other than banks also there are many big retail customers.
Mumbai-based AGS Transact Technologies is trying for the 4th time for an IPO, before which already 3 times the company has applied for an IPO in the last 12 years but could not succeed.
What are the risk factors in AGS Transact Technologies IPO?
1. The company is highly dependent on the banking sector for revenue generation
2. Approx 33% of the company’s revenue comes from only 3 banks
3. Reduction in cash as a payment mode may have an adverse effect on the company
4. The industry of ATM services are regulated by RBI so any change may impact the company
5. The IPO proceeds of OFS (offer for sale) will directly go to the selling shareholders and not to the company
6. Company, promoters, directors, and subsidiaries all have pending legal proceedings
7. As the company also provides cash management and digital payment services it is exposed to fraud and other security risks
8. Company has certain contingent liabilities which can create an adverse impact
9. Company has shown negative cash flows in the recent financial periods
10. Company has incurred loss for 5 months ending August 21, However company has shown profits in FY-20 & 21
What are the competitive strengths of AGS Transact Technologies IPO?
1. Company is the largest payment services provider in India in terms of providing digital and cash-based solutions to bank and corporate clients
2. The company derives revenue from a variety of products and services and distribute them to diverse industries such as banking, retail, petroleum, toll and transit, cash management, and fintech in India and other select countries in Asia
3. Company has a long-standing relationship with leading technology providers, such as Diebold Nixdorf and ACI
4. Also, the company has established relations with financial institutions such as ICICI Bank Limited, Axis Bank Limited, HDFC Bank Limited, Federal Bank Limited, Dhanlaxmi Bank Limited, and RBL Bank Limited
5. Moreover, the company also has customers such as More Retail Private Limited, color companies such as Asian Paints Limited, Kansai Nerolac Paints Limited and Berger Paints India Limited, and petroleum companies, including IOCL and HPCL
6. Company has dedicated in house large infrastructure & technological capabilities
7. The company also has a highly experienced and senior management team
What are the strategies Company follow towards their growth?
1. As GOI is pushing adoption in digital payments the company is also focusing on increasing their digital payment solutions business
2. The company has launched Ongo ecosystem through which they provide POS, UPI, Bharat QR, RFID all these payments through a single machine
3. The company is also focussing on its ATM and CSR business as it has a wide growth ahead
4. Besides growing in India the company is also focusing to grow internationally and already established teams in different countries in Asia
What is AGS Transact Technologies Limited’s business model?
The company’s business model comprises mainly of these categories:
1. Payment Solutions: which comprises ATM and CRM outsourcing and managed services, cash management services, iCDs, digital payment services which include toll and transit solutions, Fastlane, transaction switching services, services through POS machines, and agency banking
2. Banking Automation Solutions: which comprises the sale of ATMs and CRMs, currency technology products and self-service terminals, and related services and upgrades
3. Other Automation Solutions: This comprises the sale of machines and related services to customers in the retail, petroleum, and color sectors.
Who are the promoter’s of AGS Transact Technologies Limited?
Mr. Ravi B. Goyal and Vineha Enterprises Pvt Ltd are the promoters of the company.
How are the Company Financials?
- For the last three years revenues are declining
- Profit after tax for the last three years are fluctuating
- And, as of August 21 ending of 5 month period revenue has grown but profit has fallen
|Financial Year Ended||Revenue (₹ Crores)||PAT (₹ Crores)||EPS (₹)|
|As of August 2021||753.40||-18.10||-1.53|
What are the objects of AGS Transact Technologies IPO net proceeds?
The entire IPO is of a 680 Crores Offer for sale and no fresh issue of shares, therefore the IPO proceeds will entirely go to the selling shareholders and the company will not get any amount from it, however, the company will get listing benefits.
AGS Transact Technologies IPO open & close date
IPO open date is: 19th Jan 2022
IPO close date is: 21st Jan 2022
AGS Transact Technologies IPO allotment, refund & listing date
AGS Transact Tech IPO allotment date is: 27th Jan 2022
IPO refund date is: 28th Jan 2022
IPO listing date is: 1st Feb 2022
AGS Transact Tech IPO allotment status
AGS Transact Technologies IPO GMP (Grey Market Price) today
|Date||GMP ( ₹ )||Premium (%)||Expected Listing Price|
|JAN 17, 2022||Rs 20||11.43%||Rs 195|
|JAN 18, 2022||Rs 10||5.71%||Rs 185|
|JAN 19, 2022||Rs 10||5.71%||Rs 185|
|JAN 20, 2022|
|JAN 21, 2022|
|JAN 22, 2022|
|JAN 23, 2022|
|JAN 24, 2022|
|JAN 25, 2022|
|JAN 26, 2022|
|JAN 27, 2022|
|JAN 28, 2022|
|JAN 29, 2022|
|JAN 30, 2022|
|JAN 31, 2022|
|FEB 01, 2022|
AGS Transact Technologies IPO details, price band, & RHP
|IPO bidding date||19 Jan 2022 – 21 Jan 2022|
|Price range||166 – 175|
|Minimum order quantity||85|
AGS Transact Technologies IPO live subscription status
|Qualified Institutional Buyers (QIB)||Noninstitutional bidders (NII)||Retail individual investors (RII)||Total no of shares offered|
|No of shares offered||8,192,770||6,144,578|
|Date||Qualified Institutional Buyers (QIB) (No of times)||Noninstitutional bidders (NII) (No of times)||Retail individual investors (RII) (No of times)||Total subscription (No of times)|
|19th JAN 2022||0.00x||1.02x||1.32x||0.88x|
|20TH JAN 2022||0.00x||0.00x||0.00x||0.00x|
AGS Transact Technologies IPO valuation (Overpriced or not?)
Calculating valuation with its upper price band of Rs 175
FY-21 EPS is = 4.62
The last three years’ weighted average EPS is = 5.5
5 months Aug 21 EPS is = In loss so P.E cannot be computed
Workings & calculation of P.E
FY-21 EPS is = 4.62, 175/4.62 = 38x P.E
The last three years’ weighted average EPS is = 5.5, 175/5.5 = 32x P.E
Hence, the company is asking P.E ranging between 32x to 38x
There is no listed peer with the same business but recently listed IPO CMS Info Systems has some match with its business connection with ATM and cash management services, So if we compare with CMS Info Systems which was listed at around P.E of 24X
So, considering all these factors the IPO price is highly-priced
AGS Transact Technologies IPO is good or bad? (review)
AGS Transact Technologies Limited is the largest omnichannel payment services provider in India in terms of providing digital and cash-based solutions to bank and corporate clients, Also the company has a good customer base and also has a diversified products/services portfolio
As of August 31, 2021, their portfolio consisted of 14,099 ATMs and CRMs under outsourcing business and 19,161 ATMs and CRMs under managed services business in India. They also provide outsourcing solutions for 1,273 ATMs and kiosks in Sri Lanka, as of August 31, 2021.
Also, looking at its future focus aspects is also justifying as the company is growing its digital payments solution with its Ongo system
However, coming to its financials the company is not doing so great here, as the revenues are revolving in the same area and too the profits are declining and even up to Aug21 the company is in loss
After analyzing all its positive and negative factors, currently at this position investing will be riskier as it is in loss up to 5 months ending Aug21 and too the IPO price is overvalued, so it will be better to wait for a good valuation. And for listing gains also it is a no because looking at its GMP till now there is no such excitement.
How to apply for IPO?
Steps to apply in AGS Transact Technologies IPO through Zerodha
- Visit the Zerodha website and log in to Console.
Go to Portfolio and click the IPOs link.
Go to the ‘AGS Transact technologies IPO’ row and click the ‘Bid’ button.
Enter your UPI ID, Quantity, and Price.
‘Submit’ IPO application form.
Visit the UPI App (net banking or BHIM) to approve the mandate.
If you 👍 my IPO analysis do subscribe to my newsletter & share it with your loved ones😊
QIB Shares Offered Not more than 50% of the offer
Retail Shares Offered Not less than 35% of the offer
NII (HNI) Shares Offered Not less than 15% of the offer
Pre Issue Share Holding98.23%
Post Issue Share Holding66.07%
The AGS Transact IPO market lot size is 85 shares. A retail-individual investor can apply for up to 13 lots (1105 shares or ₹193,375).