AGS Transact Technologies is an omni-channel payment solutions provider, which provides digital and cash-based solutions to banks and corporate clients.
The company provides customized products and services comprising ATM (automated teller machine) and CRM (cash recycler machine) outsourcing, cash management and digital payment solutions including merchant solutions, transaction processing services and mobile wallets.
As of 31 March, AGS was the second largest company in India in terms of revenue from ATM managed services under the outsourcing model, and revenue from cash management and number of ATMs replenished, the company said in its draft IPO papers. As of 31 March, it has deployed 207,335 payment terminals.
AGS Transact Technologies Unlisted Shares Details:
| Total Available Shares: | 100+ |
| Face Value: | ₹ 10 Per Equity Share |
| ISIN: | INE583L01014 |
| Sector | Digital payment solutions & automation technology |
| Current Unlisted Share Price: | Best rate in industry |
Business Segments
The following are the segments in which they operate:
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Payment Solutions
ATM and CRM offshore and managed tools, cash management services, iCDs, digital payment assistance such as toll and transit solutions, Fastlane, transaction switching services, services via POS machines, and agency banking are all part of their Payment Solutions category.
ICICI Bank Limited, Axis Bank Limited, HDFC Bank Limited, and Federal Bank Limited are among our Payment Solutions clients.
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Banking Automation Solutions
Their Banking Automation Solutions business section, which began in 2004, offers ATMs and CRMs, as well as currency technology and self-service terminals, as well as related services and updates.
They have about 50 banking clients as of March 31, 2021, namely ICICI Bank Limited, HDFC Bank Limited, and Axis Bank Limited.
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Other Automation Solutions
The selling of machines and associated products to clients in the retail, petroleum, and colour industries is under their Other Automation Solutions business area. They sell automation products and provide installation services, system integration, remote administration and support, and help desk services as part of their Other Automation Solutions business.
More Retail Private Limited is a customer of their retail sector products, whereas HPCL, IOCL, and BPCL are clients of their petroleum industry offerings. Clients include Kansai Nerolac Paints Limited and Berger Paints India Limited, and their colour activities largely consist of the provision of automatic paint dispensers and associated services.
Service
They installed, preserved, or handled a system of about 72,000 ATMs and CRMs, offered cash management assistance to 47,569 ATMs via SVIL, equipped 207,335 merchant POS and roughly 46,000 cash billing terminals, automated approximately 16,700 petroleum outlets, and installed 85,700 colour dispensing machines.
SVIL refilled an average daily amount of roughly 20 billion, 10 billion, and 9 billion in the fiscal years 2021, 2020, and 2019, and completed 1,094.93 million, 871.74 million, and 936.83 million switching transactions, correspondingly.
Their activities spanned roughly 2,200 cities and towns, with 420,000 equipment being serviced.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |||
| Total Assets | 2,913.83 | 2,241.40 | 2,054.43 | ||
| Total Revenue | 1,797.15 | 1,833.53 | 1,823.63 | ||
| Profit After Tax | 54.79 | 83.01 | 66.19 | ||
For FY21, AGSTTL’s revenue from operations was at ₹1,759 crore and net profit was ₹55 crore.
The following are strengths of AGS Transact:
- Provider of Omni-Channel Integrated Payment & Cash Systems.
- Customer-focused portfolio with excellent in-house capabilities for developing customised solutions.
- Cross-selling possibilities arise from a diverse product portfolio, customer base, and revenue streams.
- Relationships with technology suppliers and clients that have lasted a long time.
- Infrastructure and technological expertise committed to the company.
- Senior management and a well-versed Board of Directors.
AGS Transact Technologies IPO – Business Strategy
- Focus on Growing their Digital Payment Solutions Business
- Pivot from Payments-as-a-Service to Payments-as-a-Convenience through their Ongo Card and Ecosystem
- Focus on ATM and CRM Outsourcing and Managed Services
- Focus on Enhancing their Integrated Technology Payments Platform
- The focus on Cash Management Services
- Expand Internationally
Promoters of the company are Ravi B Goyal and Vineha Enterprises – together they hold 97.61 percent stake in the company. AGSTTL Employees Welfare Trust has 1.51 percent shareholding.
List of Related Parties (Key Managerial Personnel)
- Ravi B. Goyal, Chairman, and Managing Director
- Anupama R. Goyal, Non-Independent, Non-Executive Director
- Sudip Bandyopadhyay, Independent, Non-Executive Director
- Vijay Chugh, Independent Non-Executive Director
- Rahul Narain Bhagat, Independent, Non-Executive Director
- Subrata Kumar Mitra, Independent, Non-Executive Director
AGS Transact Technologies Limited
601-602 Trade World, B Wing, Kamala Mill Compound,
Senapati Bapat Marg, Lower Parel,
Mumbai 400 013, Maharashtra, India
Tel: +91 22 6781 2000
E-mail: ipocompliance@agsindia.com
Website: www.agsindia.com
PRE IPO – Kotak Special Situations Fund (KSSF), managed by Kotak Investment Advisors Limited, said it has invested ₹350 crore in AGS Transact Technologies Limited (AGSTTL) in the form of non-convertible debentures, the fund said in a statement.
KSSF’s investment in AGS Transact will significantly improve the financial risk profile of the group and help the company implement the next phase of growth.
As per AGSTTL’s draft red herring prospectus, the objects of the offer are to carry out OFS by the selling shareholders and to realise the benefits of listing of the equity shares on the stock exchanges, enhancement of the company’s brand name and creation of a public market for the equity shares in India.
Outlook-
There are no publicly traded firms in India with a range of products and services equivalent to theirs, or a scale of operations comparable to theirs. As a result, providing an industry analysis in respect to their Business is not feasible.
AGS has a proven track record of generating strong financial results as well as ongoing expansion. They think they have a solid management team with extensive industry expertise and established customer ties.
AGS Transact Technologies IPO opening date is November 2021, and the closing date is November 2021. The AGS Transact Technologies issue may list in November 2021.