AGS Transact Technologies IPO Opens on 19th Jan 2022 – Should You Invest in AGS Transact Technologies IPO?

AGS Transact Technologies IPO, is all set to hit the markets on 19th Jan 2022 and will be open for subscription till the 22nd Jan 2022. The company is a leading provider of end-to-end cash and digital payment solutions in the country.

Incorporated in the year 2002, the company also offers customized solutions to clients from banking, transit, and retail and petroleum industry. Primarily operating in three business segments such as payment, banking automation and other automation solutions, AGS Transact Technologies has a widespread network of operations spread over more than 2,200 cities and towns. Over the last few years the company has also started expanding its operations to other Asian and Southeast Asian countries including Cambodia, Singapore, Philippines, Indonesia and Sri Lanka.

Some quick facts about the AGS Transact Technologies IPO:

Price band of AGS Transact Technologies IPO

The price band for the AGS Transact Technologies IPO is between Rs. 165 to Rs. 175 per share.

Lot size

The minimum lot size for the IPO is of Rs. 85 shares.

Issue size

The issue size for AGS Transact Technologies is ₹680.00 crores.

Listing date

Shares of AGS Transact Technologies are likely to be listed on 1st Feb 2022.

Key strengths and opportunities

• The company offers multiple channels of integrated payment and cash solutions
• Multiple product offerings, diversified customer base and revenue streams
• The company has long-standing relationships with its technology providers and clients
• The company is well-managed by an experienced team
• The company has dedicated in-house infrastructure and technological capabilities
• AGS Transact Technologies has strong capabilities to develop customized solutions for clients in-house

Key factors to keep in mind while investing in the AGS Transact Technologies IPO:

• The company derives a significant portion of its revenues from banking sector clients in India. Any adverse development in the growth of the number of ATMs or the usage of ATMs in the country could have an adversely affect the company’s business and its cash flows.
• The company derives a substantial portion of its revenues from a limited number of customers. Deterioration of the business of such clients may have an adverse effect on the company’s business and its cash flows.
• The company’s business and results of operations are significantly dependent on the maintenance and growth of the ATM networks in the country as well as use of cash as payment mode. Any decrease in the use of cash as a mode of payment may have an adverse effect on company’s business and its cash flows
• For detailed information on the risks associated with the IPO, please refer to the Red Herring Prospectus.

To invest in the AGS Transact Technologies IPO click here.

– Written and contributed by Pradeep Sukumaran.