AGS Transact IPO

AGS Transact Technologies Ltd IPO

Issue Offer
Issue Opens on  Jan 19, 2022
Issue Close on  Jan 21, 2022
Total IPO size (cr)  680.00
Fresh issue(cr)  Nil
Offer For Sale (cr)  680.00
Price Band (INR)  166-175
Market Lot  85
Face Value (INR)  10
Retail Allocation  35%
Listing On  NSE, BSE

Objects of the issue 

  • To carry out an offer for sale.
  • To achieve the benefits of listing
Issue Break-up (%)
QIB Portion  50
NIB Portion  15
Retail Portion  35
Shareholding (No. of Shares)
Pre Issue  120,392,576
Post Issue  120,392,576
Indicative Timetable
Finalisation of Basis of Allotment  27-01-2022
Refunds/Unblocking ASBA Fund  28-01-2022
Credit of equity shares to DP A/c  31-01-2022
Trading commences  01-02-2022

Incorporated in 2002, AGS Transact Technologies Ltd was 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.

The company provide 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 company operate its business in three major segments: Payment Solutions;  Banking Automation Solutions; and other Automation Solutions (for customers in the retail, petroleum, and colour sectors).

  • It is the second-largest company in India in terms of revenue from ATM managed services and also the largest deployer of POS  terminals at petroleum outlets in India.
  • It not just serves the Indian market but has also expanded internationally in other Asian countries including Sri Lanka, Cambodia, Singapore,  Indonesia, and the Philippines.
  • As of August 31, 2021, it had approximately 50 banking customers,  including ICICI Bank Limited, HDFC Bank Limited and Axis Bank  Limited.
  • The company’s colour operations primarily comprise the supply of automatic paint dispensers and related services, and serve customers including Asian Paints Limited, Kansai Nerolac Paints  Limited and Berger Paints India Limited.
  • As of August 31, 2021, 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 installed 88,521 colour dispensing machines.

The business serves customers in 2200 cities and towns through  446,000 machines or customer touchpoints.

Outlook & Valuation:

The company’s revenue has been flat over the last three years, mostly on the declining side where revenue in FY21  fell to Rs 1,797 cr from Rs 1,833 cr in FY20.

The company’s profit, on the other hand, has been decreasing. The company’s profit fell from Rs  83 cr in FY20 to Rs 54.7 cr in FY21.

The company’s margin also shrank.  The company is one of India’s leading Omni-channel payment solution providers with a strong network.

However, the government’s focus on digital payments will further decrease the use and availability of cash can have an adverse effect on business activities.

The IPO is priced at a  PE of 38x and P/BV of 3.71x on the NAV of Rs 47.11, which is slightly higher than its listed peers however, they are not comparable on an apple-to-apple basis, also the IPO is purely OFS based. Thus we assign an “AVOID” rating to the IPO.

IPO Note



Mr Ravi B. Goyal is the Chairman and Managing Director of the Company.

He is responsible for the management of the overall operations of the company and its subsidiaries. He has approximately 26 years of experience in the field of technology.

  • Mr Stanley Johnson P is an Executive Director on the Board of the Company. He has been instrumental in strengthening and expanding the company’s banking outsourcing operations across India.
  • Mr Vinayak R. Goyal is an Executive Director on the Board of the Company. He works closely with management to drive strategic and business initiatives for the Company.
  • Mr SaurabhLal is the Chief Financial Officer of the Company and of its Subsidiary, SVIL. He has over 15 years of experience in the financial service industry.
  • Mrs Sneha Kadam is the Company Secretary and Compliance Officer of the Company and its Subsidiary,  SVIL. She is an associate member of the Institute of Company Secretaries of India. She has over eight years of experience as a company secretary in Indian companies.
  • Mr Ricardos El Khoury is the Chief Executive Officer and a director of its Subsidiary, Novus SGP. He has approximately 28 years of experience in the information technology sector.
  • Mr Mehernosh Parekh is the Chief Operating Officer and a Director of its Subsidiary, SVIL. He holds a Bachelor of Commerce degree from theUniversity of Bombay. He has work experience in the cash management industry.


  • An integrated omnichannel payment and cash solutions provider.
  • Customer Driven Portfolio with Strong Capabilities to Develop Customized Solutions In-house.
  • Diversified Product Portfolio, Customer Base, and Revenue Streams Leading to Cross-Selling Opportunities.
  • Long-Standing Relationships with Technology Providers and Customers.
  • Dedicated In-house Infrastructure and Technological Capabilities.
  • Experienced Board of Directors and Senior Management.


  • Focus on Growing of Digital Payment Solutions Business.
  • Focus on Enhancing the Integrated Technology Payments Platform.
  • Focus on Cash Management Services and international expansion.


  • Covid -19 epidemic has had and may continue to have some adverse effects on their business.
  • A small number of clients account for a large amount of their revenue.
  • A decrease in the use of cash as a mode of payment could have an adverse effect on its business.
  • Engaged in fee-based activities and their financial performance may be adversely affected by an inability to generate income from such activities.
  • The RBI and other government authorities heavily regulate the sectors in which they operate.

IPO Note



There are no listed companies in India whose business portfolio is comparable with that of the company’s business and comparable to the scale of operations. Hence, it is not possible to provide an industry comparison.


Particulars (Rs. In Millions) FY 2021 FY 2020 FY 2019
Equity Share Capital 1,185.81 1,185.81 1,185.81
Other Equity 4,400.81 3,803.74 3,063.53
Net Worth 5,586.62 4,989.55 4,249.34
Gross Debt 16,223.41 11,590.17 11,053.03
Revenue from Operations 17,589.44 18,004.43 18,057.42
EBITDA 4,767.60 4,954.61 4,428.75
Profit Before Tax 824.27 1,195.24 788.89
Net Profit for the year 547.92 830.14 661.94


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The contents of this document are for information purposes only.

This document is not investment advice and must not alone be taken as the basis for an investment decision.

Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of SME-IPO and various risks and uncertainties associated with the investment in the IPO of the  Company.

All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position.

They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment.

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The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performance if any, are not indicative of future results. The actual returns on investment may be materially different from the past.

Investments in Securities market products and instruments included in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low-risk tolerance.

Such investments are subject to market risks including, without limitation, price, volatility liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.

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