Payment solutions provider AGS Transact Technologies has filed preliminary papers with capital markets regulator Sebi to mop-up Rs 1,000 crore through an initial public offer.
Payment solutions provider AGS Transact Technologies has filed preliminary papers with capital markets regulator Sebi to mop-up Rs 1,000 crore through an initial public offer. In addition, another firm Harsha Engineers, manufacturer of precision bearing cages, has also approached Sebi to float an IPO.
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, draft papers filed with Securities and Exchange Board of India (Sebi) showed. Besides, the company plans 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 had filed initial papers with Sebi in 2015 to raise up to Rs 1,350 crore through an initial public offer (IPO). It had secured the regulator’s go ahead too but did not go ahead with the plan. Prior to that, the firm 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) Pvt Ltd will manage the company’s issue. Harsha Engineers’ IPO comprises fresh issuance of shares worth up to Rs 370 crore, and an offer for sale of up to 3,31,250 equity shares each by Rajendra Shantilal Shah, Harish Ranjit Rangwala, Charusheela Harish Rangwala and Nirmala Rajendra Shah.
Proceeds of the issue will be utilised towards purchase of machinery in the country; investment in Harsha Engineers Europe SRL by ways of equity infusion; investment in Harsha Precision Bearing Components (China) Company in the form of debt capital; infrastructure development for existing facilities in the country and for other general corporate purposes.
Axis Capital and Edelweiss Financial Services are the merchant bankers of the issue. The equity shares of both the companies will be listed on BSE and NSE.