An investigation into the financial woes of AGS Transact Technologies, revealing the aggressive strategies, liquidity issues, and unpaid salaries that led to its current crisis.
AGS Transact Technologies Ltd, once India's second-largest ATM manager, is grappling with a severe cash crunch that has led to loan defaults, unpaid salaries, and operational instability. The company's troubles came to light during an earnings call by its rival, CMS Info Systems, and were later confirmed by AGS itself in a stock exchange announcement.
Multiple sources, including former employees and investors, point to AGS's aggressive bidding for ATM mandates from state-owned banks as a key factor in its financial decline. This strategy required significant capital expenditure upfront, with revenue only flowing in later. The company's attempts to raise capital through the sale of its various business units have so far been unsuccessful.
The crisis at AGS has had a direct impact on its employees, with many reporting months of unpaid salaries and dues. The company's financial woes have also raised concerns about the stability of its ATM network, leading banks to consider transferring management to other providers.
Since its IPO in 2022, AGS Transact's stock price has plummeted, reflecting the company's deteriorating financial health. The company's auditors have also raised concerns about its ability to continue as a going concern.
AGS Transact faces a challenging road ahead, with uncertainty surrounding its operations and the need for significant corrective measures to restore confidence among stakeholders.
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