Mumbai: Technology Transact AGS IPO-bound, the mainstay is an ATM management business, a big bet on a cash recycling machine that produces a second wave of requests for automatic teller machines.
According to the founder, chairman and MD AGS Transact Technologies, Ravi Goyal, while digital transactions grow rapidly, cash in circulation – which was once RS 18 lakh crore around the time of demonetization – has reached Rs 29 Lakh Crore.
This shows that cash also grows.
“We plan to capture growth in these two fields,” said Goyal.
At present, there are around 40,000 cash-recycling machines – ATMs that allow customers to make the same cash for withdrawal.
These machines are being deployed by banks in their branches and, with customers familiar with them, banks see them outside the branch too.
Another reason why the cash recycling machine has not replaced all ATMs is that, at this time, a large bank that spreads ATMs is not part of interoperability settings.
What this means is that the network effect does not start because customers cannot use bank engine deposits.
However, there is a strong urge for this recycler because the RBI becomes more stringent with the norms of handling cash.
Incidentally, AGS is also a cash management service provider – good for in-house and other ATM management services.
“We are 100% in accordance with the RBI cash management norms and we have been able to continue costs to the bank,” said Goyal.
Even though the promoter sells shares, the results will be invested in the company with expensive debt pensions, which will help increase the bottom line.
AGS Transact Technologies has submitted a draft Red Herring Prospectus for IPO RS 800 Crore, which consists of offers – for sale from Goyal Promoters.
Although stocks are being sold by promoters, money will be used to retire the company’s debt that will increase the bottom line, said Goyal.
ATM Co ags files paper for IPO RS 800CR
