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AGS Transact promoters buy back TPG Growth, Actis stake
Photo Credit: Shah Junaid/VCCircle

The promoters of Mumbai-based payment solutions provider AGS Transact Technologies Ltd have bought back the 42% stake held by private equity investors TPG Growth and Actis.

The promoters now own a 97% stake in the company while employees hold the remaining via stock options, the company said in response to queries from VCCircle.

The company declined to disclose the deal value or how the promoters financed the transaction. It also didn't say whether the two PE firms took a haircut or sold their stake at par value.

TPG Growth held a 25.96% stake in AGS and Actis owned 16.44% as on 31 March 2017, according to VCCEdge, the data research platform of VCCircle.

TPG Growth had, in 2011, invested about $41.8 million (Rs 190 crore then) for a 29.69% stake in the company, according to VCCEdge. In 2012, Actis invested $40 million (Rs 220 crore) for a 16.74% stake.

The development was first reported by the Press Trust of India, citing AGS managing director Ravi Goyal.

Goyal said in the report the company is also looking for an initial public offering in the near future. He didn’t give a definite timeline. He also didn't specify the reason for buying back the two investors instead of waiting for the IPO.

The company had planned an initial public offering in 2015 but later shelved the plan.

AGS, set up in 2002, offers banking automation solutions, banking payment solutions, and automation solutions for the retail, petroleum and colour sectors, according to its website.

It installs and manages ATMs and mobile point of sale terminals. It also supplies dispensers for petroleum and colour sectors.

It provides cash management and vault services through subsidiary Securevalue India Ltd.

In 2016-17, the company’s consolidated net sales stood at Rs 1,353.17 crore up from Rs 1,192.45 crore in the previous financial year.

*This article has been updated based on comments from the company.

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