The primary IPO of the yr is right here! AGS Transact Applied sciences IPO will open for subscription on January 19, 2022, and shut on January 21, 2022.
The corporate is seeking to elevate Rs 680.00 crores by way of the IPO. On this article, we take a better take a look at the AGS Transact Applied sciences IPO Assessment 2022 and its doable future prospects. Maintain Studying to search out out!
About AGS Transact Applied sciences
AGS Transact Applied sciences is among the largest built-in omnichannel cost options suppliers in India when it comes to offering digital and cash-based options to banks and company shoppers. It’s the second-largest firm in India when it comes to income from ATM managed providers. Additionally it is the biggest deployer of POS terminals at petroleum shops in India.
The corporate has expanded internationally to supply automation and cost options to banks and monetary establishments in different Asian international locations comprising Sri Lanka, Singapore, Cambodia, the Philippines, and Indonesia. It primarily operates in 3 segments:
Cost Options:
This phase contains ATM and CRM outsourcing and managed providers, money administration providers, iCDs, digital cost providers which embrace toll and transit options, Fastlane, transaction switching providers, providers by way of POS machines, and company banking.
The purchasers embrace ICICI Financial institution Restricted, Axis Financial institution Restricted, HDFC Financial institution Restricted, and Federal Financial institution Restricted. They’ve 13,959 ATMs and CRMs beneath outsourcing enterprise which is owned by them and 18,408 ATMs and CRMs beneath the managed providers enterprise owned by prospects.
Banking Automation Options:
This phase contains the sale of ATMs and CRMs, foreign money expertise merchandise and self-service terminals, and associated providers and upgrades. They’ve roughly 50 banking prospects, together with ICICI Financial institution Restricted, HDFC Financial institution Restricted, and Axis Financial institution Restricted.
Different Automation Options:
This enterprise phase encompasses the sale of machines and associated providers to prospects within the retail, petroleum, and shade segments. They provide automation merchandise and supply implementation providers, system integration, distant administration, assist, and assist desk providers.
The purchasers embrace Extra Retail Personal Restricted, HPCL, IOCL, BPCL, Kansai Nerolac Paints Restricted and Berger Paints India Restricted.
Main opponents of the corporate embrace:
Trade Overview
In India, The variety of ATMs (together with white label ATMs) working in India’s ATMs market elevated from 212,061 as of March 31, 2016, to 238,588 as of March 31, 2021, at a CAGR of two.39%. The variety of transactions in India stood at 46,405.8 million and the worth of transactions was round ₹1,471,579.0 billion within the monetary yr 2021.
The income of India’s ATM managed providers market declined by roughly 7% f from ₹121,984.7 through the monetary yr 2020 to ₹113,408.4 million through the monetary yr 2021 as a result of restrictions and lockdowns in India on account of the COVID-19 pandemic.
The Indian digital cost area has seen extraordinary development in the previous few years, with the amount of transactions growing at a CAGR of 36%. New and revolutionary cost merchandise similar to UPI, NETC, FASTag, and BBPS have contributed to the expansion of the digital cost business.
Strengths of AGS Transact Applied sciences
- One of many largest built-in omnichannel cost options suppliers in India.
- Robust Capabilities to develop and supply custom-made options to prospects.
- Having a presence in numerous industries led to a Diversified Product Portfolio, a powerful Buyer Base, and A number of Income Streams
- Robust long-standing relationships with main world expertise suppliers, similar to Diebold Nixdorf has enhanced their market place
- Expert and devoted In-house Infrastructure and Technological Capabilities assist them obtain economies of scale.
Weaknesses of AGS Transact Applied sciences
- The COVID-19 pandemic-related lockdown stays a menace as it might result in the momentary closure of their POS retailers, companions, and distributors.
- Reluctance to make use of money in transactions, and subsequently much less withdrawal of money from ATMs, on the whole, may influence their enterprise.
- The corporate is susceptible to cyber-security threats and potential breaches.
- A extremely regulated enterprise surroundings and vulnerable to be affected by any adversarial authorities insurance policies
- The corporate generates a good portion of its income from the charges they cost for his or her providers which is essentially depending on the amount of transactions.
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Gray Market Info
Shares of AGS Transact Applied sciences traded at a 13.14% premium on January 14th. The shares had been buying and selling at Rs 198. This offers a premium of Rs 23 over the difficulty value band of Rs 166- 175.
Key Info on AGS Transact Applied sciences IPO
Mr Ravi B. Goyal and Vineha Enterprises Pvt Ltd are the promoters of the corporate. The Ebook Working Lead Managers are ICICI Securities Restricted, HDFC Financial institution Restricted, and JM Monetary Restricted. Hyperlink Intime India Personal Restricted has been appointed because the registrar to the difficulty.
| Particulars | Particulars |
|---|---|
| IPO Measurement | Rs 680.00 Cr |
| Recent Situation | 0 |
| Provide for Sale (OFS) | Rs 680.00 Cr |
| Opening date | January 19, 2022 |
| Cut-off date | January 21, 2022 |
| Face Worth | ₹10 per fairness share |
| Worth Band | ₹166 to ₹175 per fairness share |
| Lot Measurement | 85 Shares |
| Minimal Lot Measurement | 1 |
| Most Lot Measurement | 13 |
| Itemizing Date | February 1, 2022 |
The target of the Situation
The IPO goals to make the most of the web proceed for the next:
- To hold out a suggestion on the market by promoting shareholders.
- To appreciate the itemizing advantages of fairness shares on the inventory trade.
In conclusion
On this article, we lined the AGS Transact Applied sciences IPO Assessment 2022. The Preliminary Public Providing opens on January 19, 2022, and closes on January 22, 2022. For buyers, it may be a great alternative to look into the corporate and apply for the IPO after analyzing the strengths and weaknesses of the corporate.
Are you making use of for the IPO? Tell us within the feedback under. Completely satisfied Investing!
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