Indian payments services firm AGS Transact Technologies, based in Maharashtra, faces insolvency proceedings over alleged unpaid dues. Maxwel Aircon India Private Limited, an operational creditor, has moved the National Company Law Tribunal (NCLT) citing default in repayments. The firm, which provides digital and cash-based banking solutions, has been struggling with financial distress, resulting in credit rating downgrades and the exit of independent directors. The company’s lenders include major banks like IndusInd Bank, SBI, and HDFC Bank.
Indian payments services firm AGS Transact Technologies is facing insolvency proceedings after a creditor, Maxwel Aircon India Private Limited, alleged non-payment of dues. The creditor has filed for corporate insolvency before the National Company Law Tribunal (NCLT), according to an exchange filing by AGS Transact.
AGS Transact Technologies, headquartered in Maharashtra, specializes in providing digital and cash-based banking solutions to financial institutions and corporate clients, including ATM management services. The company has been facing financial turmoil in recent months, leading to multiple credit rating downgrades and the resignation of all four of its independent directors.
Creditor’s Allegations and Legal Battle
Maxwel Aircon, an operational creditor of AGS Transact, claims the company defaulted on repayments. While Maxwel Aircon has not issued an official statement regarding the filing, AGS Transact has stated that it is seeking legal advice and will take necessary steps to protect its interests in the matter.
The company, along with its ATM cash-replenishment unit, reportedly defaulted on dues amounting to 7.26 billion rupees ($83.1 million). The financial strain has resulted in the company missing interest payments on term loans in December 2024 and January 2025.
Credit Rating Downgrades and Financial Struggles
The firm’s financial distress has drawn attention from credit rating agencies. Crisil downgraded AGS Transact’s credit rating on February 4, 2025, citing default risks, while India Ratings followed with another downgrade on February 5, 2025. The agencies pointed to delays in receivables and liquidity issues as key reasons for the firm’s failure to meet its financial obligations.
Following the downgrades, AGS Transact disclosed the defaults in an exchange filing, a week after Crisil’s downgrade. The company reported a loss in its December 2024 quarter, and its auditor raised concerns about AGS Transact’s ability to continue as a going concern.
Stock Plunge and Market Impact
AGS Transact’s shares have suffered a steep decline, dropping 62.4% since February 4, 2025. The stock hit a record low of 18.97 rupees and continued its downward trend, consistently hitting the exchange-allowed limit.
Lenders and Banking Sector Impact
AGS Transact’s lenders include major financial institutions such as:
- IndusInd Bank
- Investec Bank
- Aditya Birla Finance
- IDFC First Bank
- SBM Bank (India)
- State Bank of India (SBI)
- Bandhan Bank
- HDFC Bank
- Dhanlaxmi Bank
- SBI Global Factors
- Bajaj Finance
- Federal Bank
The banks have yet to release official statements regarding the insolvency proceedings. The case has raised concerns over the broader financial health of India’s payments and banking sector, particularly regarding regulatory oversight on digital and cash-based transaction service providers.
As AGS Transact battles legal and financial challenges, the outcome of the NCLT proceedings will determine the company’s future. Industry experts are closely monitoring the situation, with potential implications for India’s digital payments and banking ecosystem.
