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Payment solutions provider AGS Transact Technologies has received approval from the Securities and Exchange Board of India to mop up Rs 1,000 crore through an initial public offer.
The company, which had filed its draft papers with SEBI in August for its approval to float an initial share-sale, had obtained its “observations” on October 26. SEBI’s observations are necessary for any company to launch an initial public offer, follow-on public offer and a rights issue.
Going by the preliminary papers, AGS’ initial share-sale comprises fresh issue of equity shares aggregating up to Rs 400 crore besides an offer for sale worth up to Rs 600 crore by the existing shareholders.
Besides, the company plans to come out with a pre-IPO placement of up to 50 lakh equity shares for up to Rs 125 crore. Funds raised through the issue will be used for payment of certain loans and other general corporate purposes. This is the company’s third attempt to hit the capital market.
Earlier, AGS Transact had filed initial papers with SEBI in 2015 to raise up to Rs 1,350 crore through an IPO. It had secured the regulator’s approval too but did not go ahead with the plan. Prior to that, the company had filed draft papers with the markets watchdog in 2010 but did not launch the public issue.
ICICI Securities, Axis Capital, HDFC Bank, IIFL Holdings, IndusInd Bank and Nomura Financial Advisory and Securities (India) will manage the company’s issue. Equity shares of the company will be listed on the BSE and NSE.
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