AGS Transact to raise Rs 200 crore to expand operations

economictimes.indiatimes.com:

AGS Transact is looking to raise Rs 200 crore to expand its operations. While the promoter group, led by founder Ravi Goyal, will invest Rs 150 crore the remaining will be brought in by non-promoter investors led by marquee high networth individuals including Ayush Mittal, Ashit M Mehta and Rajiv Mehta.

In an exchange filing the company had said that its board of directors had approved fund raise by way of preferential warrants to promoter and promoter group along with Non-Promoters at a price of Rs. 79.25 per share.

“AGS Transact remains at the forefront of various opportunities in the payment solutions space and digital business in India,” said Ravi B. Goyal, Chairman and Managing Director of the company. “This fund raise is in alignment with the company’s long-term growth objective to capitalise on this changing landscape. With this, the company is strategically placed to drive growth in the coming years while strengthening its balance sheet.”

The company is consciously moving towards increasing the share of its service business, having increased it to about 95% of the revenue in FY24.

The company will focus on growing its digital payments segment, especially the Prepaid Issuance business. The fund raise will be utilised towards the growth of ATM Outsourcing business and digital payments business. The company also said that it will be working towards achieving the goal of becoming debt free over the next few years.