In its third attempt, payments solutions provider AGS Transact Technologies (AGS) has filed initial papers with SEBI to raise about Rs 1,000 crore through an Initial Public Offering (IPO).
The IPO comprises a fresh issue of up to Rs 400 crore and an offer for sale of upto Rs 600 crore by promoters, according to the Draft Red Herring Prospectus (DRHP) filed with the market regulator.
AGS and promoters may also consider a pre-IPO placement of up to 50-lakh shares for about Rs 125 crore.
AGS provides customised products and services comprising ATM outsourcing and cash management, digital payment solutions such as merchant solutions, transaction processing services and mobile wallets.
THIRD ATTEMPT AT IPO
This is the third time the company is looking at raising funds through an IPO. It had filed papers for an IPO in March 2015 to raise upto Rs 1,350 crore and later in 2010. The company also withdrawn from the IPO, citing “bad market conditions”.
The Company proposes to use the proceeds from the IPO for repayment or pre-payment of certain loans and for general corporate purposes.
ICICI Securities, Axis Capital, HDFC Bank, IIFL Holdings, IndusInd Bank and Nomura Financial Advisory and Securities (India) are the book rung lead managers to the issue.
Pursuant to the issue, AGS will list its shares on both BSE and NSE.
As of March 31, the company is the second-largest company in India in terms of number of ATMs managed, revenue from ATM managed services and number of ATMs provided with cash management services. It is the fourth-largest in India in terms of revenue from cash management, it added.
For the financial year ended March 31, 2018, AGS had a revenue from operations was at Rs 1,481.32 crore, which grew at about 10.7 per cent per annum between the financial years 2016 and 2018.