Tag: OFS

AGS Transact Technologies Ltd (AGSTTL) is planning an initial public offer (IPO) of up to ₹800 crore through an offer for sale (OFS) by the selling shareholders.

The OFS will be made by the promoter selling shareholder — Ravi B Goyal — aggregating up to ₹792 crore and other selling shareholders — VC Gupte, Shailesh Shetty, Rakesh Kumar, Nikhil Patiyat and Rajesh Harshedrai Shah — aggregating up to ₹8 crore.

The selling shareholders collectively hold 55.33 per cent of the pre-offer share capital of the company.

As per AGSTTL’s draft red herring prospectus, the objects of the offer are to carry out OFS by the selling shareholders and to realise the benefits of listing of the equity shares on the stock exchanges, enhancement of the company’s brand name and creation of a public market for the equity shares in India.

Currently, promoters — Ravi B Goyal (55.20 per cent stake) and Vineha Enterprises Private Ltd/VEPL (42.21 per cent) — collectively hold 97.61 per cent stake in AGSTTL. The promoter group holds 98.23 per cent stake.

AGSTTL is an omni-channel payment solutions provider, which provides digital and cash-based solutions to banks and corporate clients.

The company provides customised products and services comprising ATM and CRM outsourcing, cash management and digital payment solutions including merchant solutions, transaction processing services and mobile wallets.

For FY21, AGSTTL’s revenue from operations was at ₹1,759 crore (₹1,800 crore for FY20) and net profit was ₹55 crore ( ₹83 crore).

Pursuant to a Share Subscription Agreement (SSA) dated April 1, 2021 entered into between VEPL and AGSTTL, the latter subscribed to 65 crore compulsorily convertible preference shares (CCPS) of VEPL of face value ₹10 each.

Pursuant to a share purchase agreement dated August 16, 2021 entered into between Ravi B. Goyal and AGSTTL, Goyal has agreed to purchase and AGSTTL has agreed to sell the VEPL CCPS on terms set out in such agreement, as per the DRHP.