India Ratings and Research (Ind-Ra) has revised AGS Transact Technologies Limited's (AGS Transact) Outlook to Positive from Stable while affirming the Long-Term Issuer Rating at 'IND A+'. The agency has upgraded the short-term debt rating to 'IND A1+' from 'IND A1'.
The Outlook revision reflect the significant debt reduction post the recently concluded initial public offer (IPO) and the resultant improvement in the leverage situation. AGS Transact's promoters infused INR6.5 billion of the IPO proceeds in the company, which was utilised to fully redeem non-convertible debentures (NCDs) totalling INR5.5 billion in February 2022. AGS Transact's rating is underpinned by its strong market positioning across the payment value chain (automated teller machines (ATMs), digital payment solutions and cash management), high visibility on cash flows from its services revenue, and the track-record of positive free cash flow (FCF) generation.
The upgrade in short-term debt rating reflect a meaningful improvement in AGS Transact's liquidity position post the recently concluded deleveraging. AGS Transact has replaced high-cost/short-tenured debt with low-cost/ long-tenured debt, thereby significantly improving the cash flow buffer available for debt servicing.
Shares of AGS Transact Technologies Ltd was last trading in BSE at Rs. 106.20 as compared to the previous close of Rs. 100.00. The total number of shares traded during the day was 103327 in over 1600 trades.
The stock hit an intraday high of Rs. 106.95 and intraday low of 100.25. The net turnover during the day was Rs. 10782904.00.