First mainboard IPO of CY2022 from AGS Transact

At the outset Happy, Healthy and Wealthy new CAY2022 to all.

The primary market was eagerly waiting for the breaking of ice from mainboard IPOs for CY2022 and here it is. AGS Transact Technologies Ltd., a company in ATM, Cash Management and related services with innovative solution products is entering the market with its secondary offer worth Rs. 680 cr.

Though this issue is by way of Offer for Sale, the company has entered into an agreement with the main seller stakeholder to plough back Rs. 650 cr. in the company and will subscribe to CCPS and the company will utilize this fund in reducing its borrowing. This is definitely a good step and the process will be completed soon after the closure of the IPO.

This move will reduce the company's finance cost and lift its bottom line. The issue price is perhaps lowered due to losses reported by the company for the first five months of FY22. For the previous three fiscals, it posted profits.

However, the treaty entered into by the company and seller stakeholders remind one of the cases of Sterling & Wilson Solar. While referring to this, when a query was raised, management replied that the adjustment will take soon after the closure of the IPO and thus there will be no hitch on any matter.

Detailed info and my review can be seen on chittorgarh.com

My review is on the following link:

https://www.chittorgarh.com/ipo_review/ags-transact-ipo/3227/

This segment is poised for bright prospects considering the very low penetration of banking automation in India compared to worldwide data. Investment with a long term perspective by cash surplus/risk seeker investors may fetch good rewards. However, one must consult their financial advisor before making any final decision on investment.