AGS Transact Technologies IPO: Opens today; key details that an investor must know before investing

The initial public offering (IPO) of AGS Transact Technologies, a payment solutions provider, is set to open for public bidding today, i.e., Wednesday, January 19, 2022. It will remain open for subscription till Friday, January 21, 2022.

The company has fixed a price band of the IPO at Rs 166-175 per share. The company has plans to raise up to Rs 680 crore from the public issue.

The IPO is entirely an offer for sale (OFS) by a promoter and other selling shareholders. The company will not receive any money from the public offer as all the money will go to selling shareholders.

The company's promoter Ravi B Goyal will sell shares worth up to Rs 677.58 crore. Among others, Shailesh Shetty, Rakesh Kumar, VC Gupte, Nikhil Patiyat and Rajesh Harshedrai Shah will sell the remaining Rs 2.42 crore worth of shares.

Retail investors can bid for a minimum of 85 equity shares and in multiples of 85 shares thereafter. This means, retail investors can make a minimum investment of Rs 14,875 per lot, and the maximum investment would be Rs 1,93,375 for 13 lots as they are allowed to invest up to Rs 2 lakh in the IPO.

Half the offering is reserved for qualified institutional buyers, 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors.

ICICI Securities Limited, HDFC Bank Limited and JM Financial Limited are the Book Running Lead Managers of the issue while Link Intime India Private Limited is the registrar.

Besides, the omnichannel payment solutions provider AGS Transact Technologies on January 18, 2022, raised Rs 204 crore from 17 anchor investors ahead of its IPO that will open today. The anchor investors who participated in the issue include HDFC Balanced Advantage Fund, Nippon India Small Cap Fund, BNP Paribas, IIFL Special Opportunities Fund, Abakkus Growth Fund, Quant Mutual Fund, Resonance Opportunities, Ashoka India Equity Investment Trust Plc, Kuber India Fund, Saint Capital Fund, Tara Emerging Asia Liquid Fund and Cohesion MK Best Ideas among others.

AGS Transact provides customised products and services comprising automated teller machines (ATMs) and cash recycler machines, outsourcing, cash management and digital payment solutions including merchant solutions, transaction processing services and mobile wallets.

As of March 31, 2021, the company was the second-largest company in India in terms of revenue from ATM managed services under the outsourcing model, revenue from cash management and the number of ATMs replenished. As of August 31, 2021, it deployed 221,066 payment terminals and was one of the largest deployers of point-of-sale terminals at petroleum outlets in India. As of August 31, 2021, it had approximately 50 banking customers, including ICICI Bank Ltd, HDFC Bank Ltd and Axis Bank Ltd.