AGS Transact Applied sciences Restricted integrated on December 11, 2002, is among the largest built-in Omni-channel cost options suppliers in India by way of offering digital and cash-based options to banks and company shoppers, as of March 31, 2021. The corporate can also be the second-largest firm in India by way of income from ATM managed companies underneath the outsourcing mannequin, income from money administration and the variety of ATMs replenished. It gives personalized services comprising ATM and CRM outsourcing, money administration, and digital cost options together with service provider options, transaction processing companies, and cellular wallets.
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AGS Transact operates its enterprise within the following segments: i) Fee Options; ii) Banking Automation Options; and iii) Different Automation Options (for purchasers within the retail, petroleum, and color sectors). The corporate, as of August 31, 2021, has deployed 221,066 cost terminals and was one of many largest deployers of POS terminals at petroleum retailers in India, having rolled out IPS at 154 greater than 16,000 petroleum retailers with 28,986 terminals. They’ve additionally 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.
Promoters & Shareholding:
Satish Waman Wagh is the corporate promoter.
| Pre Challenge Share Holding | 98.23% |
| Publish Challenge Share Holding | 66.07% |
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Public Challenge Particulars:
Supply on the market: OFS of approx. 18,248,175 fairness shares of Rs. 10, aggregating as much as Rs. 680 Cr.
Goal: To hold out a suggestion on the market by promoting shareholders and to achieve itemizing advantages of fairness shares on the inventory trade.
Bid qty: minimal of 85 shares (1 lot) for Rs. 14,875 and most of 13 heaps.
Date of itemizing: 1st Feb 2022.
Professionals:
- One of many largest built-in Omni-channel cost options suppliers in India.
- Diversified product portfolio.
- Sturdy Capabilities to Develop Custom-made Options In-house.
- Skilled and skilled administration crew.
- Devoted In-house Infrastructure and Technological Capabilities.
Cons:
- A lower in using money as a mode of cost might damage its enterprise because it will depend on the expansion of the ATM community in India.
- COVID-19 pandemic has had and should proceed to have sure antagonistic results on its enterprise.
- Any adjustments in interchange charges by the Nationwide Funds Company of India (NPCI), or via potential regulatory adjustments could hurt its enterprise.
- Its income has been lowering for the reason that final 2 yrs.
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Sectorial outlook – Indian ATM administration companies market is at a creating stage. The ATM Managed Providers Market is reasonably fragmented among the many prime 6-7 gamers which constituted 60-70% of the income share although a number of smaller gamers are present available in the market. Indian authorities throughout August 2014 has initiated the scheme of opening up a checking account at zero stability underneath Pradhan Mantri Jan Dhan Yojana (PMJDY). This led to an growth within the variety of transactions carried out in an ATM as debit card customers in India elevated considerably. The variety of ATMs (excluding white label ATMs) put in elevated from 199,099 as of March 31, 2016, to 213,575 as of March 31, 2021. The Indian ATM administration companies trade stays underpenetrated however it’s anticipated to develop at a constructive double-digit CAGR throughout FY21 to FY26 because the implementation of cassette swap takes place, that is anticipated to have a constructive influence on the corporate and its enterprise.
The financials (income and web revenue) are proven within the graph beneath:
Valuation – For the final 3 years common EPS is Rs. 5.5 and the P/E is round 32x on the higher worth band of Rs. 175. The EPS for FY21 is Rs. 4.55 and the P/E is round 38x. We can not annualize the primary 5 months ended at Aug-21 for the reason that firm has incurred losses. There aren’t any listed friends as per the RHP. The corporate P/E is between 32x and 38x however we can not decide whether or not it’s under-priced or over-priced because it doesn’t have any listed friends.
Suggestion – Regardless that the corporate is among the largest built-in Omni-channel cost options suppliers in India, it will likely be very troublesome to develop the enterprise due to the rise of digital cost companies lately and the pandemic the place regardless that ATMs and money companies have been declared as important companies and remained useful, their AMC companies, Banking Automation Options decreased by greater than 20% and this pandemic may proceed and should trigger lockdown in sure areas which might adversely have an effect on its enterprise. After contemplating all of the elements we might advocate buyers to “AVOID” this IPO for now, buyers with extra money and high-risk profile can subscribe however risk-averse buyers can simply watch for the itemizing they usually can get into it if they can determine some constructive macro elements and the inventory is buying and selling at a reduction.
Disclaimer:
This text shouldn’t be construed as funding advise, please seek the advice of your Funding Adviser earlier than making any sound funding determination. When you do not need one go to mymoneysage.in
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