c to use Rs 600 cr of IPO proceed to retire debt

Mumbai: AGS Transact Applied sciences, which leads the web funds house at gasoline stations and is among the many largest gamers in ATM and money administration providers, will use Rs 600 crore of the Rs 800-crore-fully offer-for-sale concern to retire debt. Ravi Goyal, chairman & managing director of AGS, instructed PTI that the corporate has Rs 1,100 crore principally long run debt, and post-IPO, it should come all the way down to round Rs 500 crore as they’ll pay again Rs 600 crore and the remaining Rs 200 crore will come to the corporate.

At the moment, Goyal and his household personal 95 per cent of the city-based agency, and the remainder is with workers by way of Esops.

The service provider bankers are but to reach at a valuation, which is able to determine how a lot the promoters will dilute their stake, he mentioned.

Goyal mentioned debt rose after he purchased out non-public fairness corporations Actis and TPG in 2018, which had invested Rs 410 crore in 2012 for 42 per cent fairness. In 2018, they have been purchased out for Rs 450 crore.

The Rs 800-crore IPO consists of Goyal promoting 8 crore shares value Rs 792 crore by way of OFS and relations — VC Gupte, Shailesh Shetty, Rakesh Kumar, Nikhil Patiyat and Rajesh Harshedrai Shah — promoting for Rs 8 crore.

That aside just a few of the five hundred workers out of the two,500, who have gotten the Esops may also be promoting, he mentioned.

AGS began offering banking automation options in 2004 by deploying ATMs of Diebold-Nixdorf, and from 2009, it started to supply ATM outsourcing and managed providers once more with Diebold-Nixdorf for banking and retail merchandise.

From 2011, it started to supply transaction switching providers and money administration providers in 2012. And in 2014, it started to supply digital fee options.

For the fiscals 2021, 2020 and 2019, its earnings stood at Rs 1,797 crore, Rs 1,833 crore and Rs 1,823 crore, from which it earned a pre-tax revenue of Rs 82.4 crore, Rs 119.5 crore and Rs 78.9 crore on a gross margin of 26.5, 27 and 24.3 per cent, respectively.

On the expansion focus, Goyal mentioned income will proceed to come back from digital companies, ATM and money administration providers. At the moment, as a lot as 87.3 per cent of the income is recurring, of which 12 per cent come from digital.

He mentioned ATM and money administration providers are the money cows when it comes to the topline and bottom-line. And among the many two, ATM offers the best internet margin, particularly after the RBI allowed Rs 17 per ATM transaction of which Rs 14 involves AGS per traction now.

AGS is the biggest built-in omnichannel fee options supplier when it comes to offering digital and cash-based options to banks and company purchasers.

Its providers embrace customised services comprising ATM and CRM outsourcing, money administration and digital fee options, together with service provider options, transaction processing providers and cell wallets.

In FY21, it was the biggest deployer of fee machines at gasoline pumps at over 16,000 retailers with 28,986 terminals, and the second largest when it comes to income from ATM managed providers beneath the outsourcing mannequin and income from money administration.

At the moment, the fee options vertical fetches 76.8 per cent of income, banking automation options 9.1 per cent and different automation options get the remaining 14.1 per cent of the topline, Goyal mentioned.