Came across AGS on a post about Gensols credit downgrade.
Surprised to see veteran Ajay Upadhyaya has recently invested around 14-15cr in AGS. May be small money, considering his public NW of 1000cr and private maybe much larger of course.
Wondering why he has put in funds. Risky bet or charity?
He’s quite astute and known for very good futuristic bets, but this one really surprises me. Along with last year’s Omaxe.
HDFC balanced advantage fund has invested around 80 cr at 1500-1600 cr mcap
There is a high possibility that this stock might reach 100 cr mcap in the next few days
Since the company is in ATM and cash management can HDFC bank actually acquire and turnaround this business?
Wow, you’ve just bowled a total googley here, @sarthak_saraf
Are you being serious?
Neomile Growth Fund - Series I - appears at 1.4 and 2.55% Dec-Jan.
We as retailers hardly know what the big guys are upto. Probably its the same for his deal with AGS Transact as well.
Here is recent article >Ever Vigilant, CRISIL and India Ratings Have Downgraded a Firm – After Default
Snap from the article :
History of important events at AGSTT
| Date | Event |
|---|---|
| 31 October 2024 | AGSTT reports 2QFY2025 Results, Cash flow from operations deteriorates |
| 04 November 2024 | 2QFY2025 Results Analysts Call |
| 04 February 2025 | CRISIL Downgrades AGSTT to ‘D’ from A/Stable Cites default on bank loans in end December 2024 |
| 04 February 2025 | India Rating Downgrades AGSTT to ‘IND D’ from ‘IND A/Stable’ |
| 10 February 2025 | AGSTT informs exchanges that it has defaulted on payments and statutory dues |
| 15 February 2025 | AGSTT reports 3QFY2025 Results, Auditor casts doubt on Group’s ability to continue as a going concern |
The article is about rating agency and how they “share their opinions” I think we all have biases…afterall rating agencies too are built and run by humans !!!
Lessons for me - Big guys get better deals, I must find my own.
Disc: Not invested.
The core issue as per my understanding is “Trade receivables” and as per Annual report its from public sector and private sector banks. Which are credible, organized organization
Few question comes to my mind
I don’t think the core issue is trade receivables. The core issue is the 1000 Cr+ debt the company is carrying on its balance sheet which was always going to be a challenge for a company of their size. They were trying to sell off stake in some businesses to avoid this situation but don’t think that worked out. The receivables issue has only fast tracked the problem.
I recently come across this thread. I am a dealer of HPCL and our company had exclusively tied up with AGS Transact Technologies for providing POS Services and Automation tech in retail outlets since around 2017. Now AGS was supposed to provide settlement of funds at T plus 1 basis. But by 2022, this had gone to T plus 10 to 12 days in my own case and also many others I knew, so effectively a huge amount of our working capital was being blocked by AGS. After numerous interventions by HPCL management, AGS was finally made to release all our payments and their tie up was terminated in February 2022. So, the fact that the company is in so much trouble is no real surprise to me.
