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 Indian market but also expanded internationally in other Asian countries including Sri Lanka, Cambodia, Singapore, Indonesia, and Philippines. The firm primarily operates in 3 business segments;

AGS Transact Technologies IPO — AGS Transact IPO

Payment Solution services such as ATM and CRM outsourcing, cash management services, digital payment solutions, transaction switching services, POS machine services, agency banking, etc. As of March 31, 2021, it has a portfolio of 13,959 ATMs and CRMs under outsourcing and 18,408 ATMs and CRMs under managed service segment. It has also deployed POS terminals at leading Indian petroleum outlets such as Hindustan Petroleum, Indian Oil Corporation while Dr. Lal Path labs, Patanjali Ayurveda, RJ Corp Ltd, VRIPL Retail Pvt Ltd, Organic India are the corporate clients.
Banking Automation Solutions i.e. Sale of ATM and CRM, self-service terminals, currency technology products, and relevant services. As of March 31, 2021, AGS Transact has 50+ banking customer base i.e. ICICI Bank. Axis Bank, and HDFC Bank Ltd.
Other Automation Solutions for customers in petroleum, retail, and color segments such as system automation products, system integration, remote management, and other service offerings.

As of March 31, 2021, it had installed a network of 207,335 merchant POS, 16,700 petroleum outlets, 72,000 ATMs and CRMs offering cash management services, 46000 cash billing terminals, and installed 85,700 color dispensing machines. The business serves customers in 2200 cities and towns through 420,000 machines or customer touch points.

AGS Transact IPO OBJECTIVE

To carry out an offer for sale by selling shareholders.
To realize the listing benefits of equity shares on the stock exchange

POSITIVES

An integrated omni-channel payment and cash solutions provider.
Diversified product portfolio, customer base, and revenue stream.
Strong capabilities to develop customized in-house solutions.
Long-standing relationship with global technology providers i.e. Diebold Nixdorf, ACI.
Strong in-house infrastructure and technological capabilities.

NEGATIVE

Company derive a significant portion of revenues from the customers in the banking sector in India. Consequently, any adverse development in the growth of the number of Automated Teller Machines (ATMs) or the usage of Automated Teller Machines (ATMs) in India could have an adverse effect on business, results of operations, cash flows and financial condition.
A decrease in the use of cash as a mode of payment could have an adverse effect on the business, results of operations, cash flows and financial condition.

AGS Transact IPO DETAILS

Subscription Dates	Jan 19, 2022 – Jan 21, 2022
Price Band	166 – 175 per share
Fresh issue	NIL
Offer For Sale	₹ 680 crore
Total IPO size	₹ 680 crore
Minimum bid (lot size)	85 shares
Face Value	₹10 per share
Retail Allocation	35%
Listing On	NSE, BSE

AGS Transact IPO TIMELINE

IPO Open Date	19 Jan 2022
IPO Close Date	21 Jan 2022
Basis Of Allotment Date	27 Jan 2022
Initiation Of Refunds	28 Jan 2022
Credit Of Shares To Demat ACcount	31 Jan 2022
IPO Listing Date	1 Feb 2022

So, how does AGS Transact IPO Fare in Terms of Financials?

Financial Details

	FY2019	FY2020	FY2021
Revenue	1,823.6	1,833.5	1,797.2
Expenses	1,380.8	1,338.1	1,320.4
Net income	67.6	83.3	57.5
Margin (%)	3.7	4.5	3.2

Data in Cr

FINANCIAL REVIEW

Revenue decreases by 2% in FY21 in comparison to FY20
Total income and Margin also decreases in FY21
Overall financial of AGS Transact IPO is not attractive

AGS Transact IPO VALUATIONS

Face Value = RS 47.11 Per Equity Share
Earnings Per Share (EPS) = 4.55
PE Ratio = 36.48 -38.46

Return on Net Worth (RONW) = 10.29
Book Value(NAV) = 47.11
Upper Offer Price to Book Value = 3.71

VALUATION REVIEW:

PE is 38 and Upper Price to Book Value is just 3.71
Overall it’s fair valued IPO but at same time there is little scope of Listing gains

COMPETITIVE ANALYSIS: MARKET PEERS

There are no listed companies in India whose business portfolio is comparable with that of our business and
comparable to our scale of operations.

AGS Transact IPO GMP

Grey market premium as on 24-01-2022 = Rs 15 /Share
Grey market premium as on 23-01-2022 = Rs 15 /Share
Grey market premium as on 22-01-2022 = Rs 15 /Share
Grey market premium as on 21-01-2022 = Rs 15 /Share
Grey market premium as on 20-01-2022 = Rs 15 /Share
Grey market premium as on 19-01-2022 = Rs 15 /Share
Grey market premium as on 18-01-2022 = Rs 21 /Share
Grey market premium as on 17-01-2022 = Rs 21 /Share
Grey market premium as on 16-01-2022 = Rs 21 /Share
Grey market premium as on 15-01-2022 = Rs 21 /Share

Disclaimer:

IPO Grey Market Premium (AGS Transact IPO GMP) mention is valid for the specific date as mentioned in the header.
We are not buying and selling IPO forms on IPO Grey Market.
Do not subscribe for IPO by just seeing premium Price as it may change anytime before listing. Subscribe only considering Fundamentals of the companies.

21/01/2022 05:00 PM

AGS Transact IPO Live Subscription Status

Category	Shares Offered
		Day 1	Day 2	Day 3
QIB	8,192,770	0.00	0.49	2.68
NII	6,144,578	1.02	1.13	25.61
Retail	14,337,348	1.32	2.06	3.08
Total	28,674,696	0.88	1.42	7.79