Protean eGov Tech, formerly known as NSDL e-Governance Infrastructure, is looking to raise Rs 490.33 crore, which is entirely an offer-for-sale of 61,91,000 shares by its selling shareholders. 
Special 
Protean eGov Tech, formerly known as NSDL e-Governance Infrastructure, is looking to raise Rs 490.33 crore, which is entirely an offer-for-sale of 61,91,000 shares by its selling shareholders. Protean eGov Technologies' initial public offering (IPO) opens for bidding on Monday, November 6. The e-governance solutions copy is selling its shares in the fixed price band of Rs 752-792 apiece with a lot size of 18 equity shares and its multiples thereafter. The issue is open for subscription until Wednesday, November 8. For more than two decades, Protean eGov Technologies has been engaged in the business of developing citizen-centric and population scale e-governance solutions. It has played a vital role in development of capital market infrastructure in India and implemented some of the most crucial technological infrastructure in the country. Protean eGov Tech, formerly known as NSDL e-Governance Infrastructure, is looking to raise Rs 490.33 crore, which is entirely an offer-for-sale (OFS) of 61,91,000 equity shares by its selling shareholders including multiple schemes of 360 One Special Opportunities Fund, NSE Investments, HDFC Bank, Unit Trust of India, Axis Bank, Deutsche Bank AG and Union Bank of India. Protean eGov Tech reserved 1.5 lakh shares for the eligible employees, who will get a discount of Rs 75 per share and the company will not receive any proceeds from the issue. Qualified institutional bidders (QIBs) will get 50 per cent of the net offer, while non-institutional investors and retail investors will have a reservation of 15 per cent and 35 per cent, respectively. Ahead of its IPO, Protean eGov Technologies allocated 18,12,300 shares to anchor investors at a price of Rs 792 apiece to raise Rs 143.5 crore. Anchor book included SBI Life, Baroda BNP Paribas MF, Aditya Birla Sun Life, Societe Generale, Astorne Capital VCC - Arven, GAM Multistock-Emerging Markets Equity, LC Radiance Fund VCC, ACM Global Fund VCC, and BCAD Fund. Mumbai-based Protean eGov Technologies has implemented and managed 19 projects spread across several ministries of the Government of India. Incorporated in December 1995, the company has modernized direct tax infrastructure through the introduction of projects like PAN issuance. It has enabled the universal social security system for all Indians. Protean eGov Tech reported a net profit of Rs 32.21 crore, with a revenue of Rs 233.17 crore for the period ended on June 30, 2023. The company's bottomline came in at Rs 107.04 crore with a revenue of Rs 783.87 crore for the financial year ended on March 31, 2023. Equirus Capital, ICICI Securities, IIFL Securities and Nomura Financial Advisory and Securities (India) are the lead managers to the issue, while Link Intime India is the registrar for the IPO. Shares of the company will be listed on only BSE. Here's what a host of brokerage firms say about the issue of Protean eGov Technologies:Reliance Securities Rating: Subscribe Protean is a unique player in the e-governance segment with 25 years of experience in creating digital public infrastructure. A secure, scalable and advanced technology platform having horizontal & vertical scalability, with consistent profitability, positive cash flows and limited capital expenditure and working capital required to scale growth in its key areas, said Reliance Securities. "Their domain knowledge for various industries, enabling policy framework with public and private sector collaboration to foster innovation in NPS and APY subscribers, online pan verifications with significant headroom for steady growth with 50-60mn PAN cards expected to be allotted annually and NPS-APY subscribers expected to grow at CAGR of 16-17 per cent as growth strategy for the coming few years," it said.Anand Rathi Research Rating: Subscribe "The company is pioneer and market leader in universal, citizen centric and population scale e-governance solutions. At the upper price band, the company is valued at a P/E ratio of 29.9 of its FY23 earnings with a market cap of Rs 3,203.4 crore post issue of equity shares. We believe that the issue is fairly priced and recommend 'subscribe with long term' rating," said Anand Rathi Research.Canara Bank Securities Rating: Subscribe Protean eGov Technologies has over 25 years of experience in creating digital infrastructure and governance solutions. The company has enabled 19 nationally critical e governance stacks while working with 7 ministries across diverse sectors, said Canara Bank Securities. "Protean has strategically expanded across the digital and e-governance ecosystem. As a niche player with a strong growth potential with market leadership, Protean has a strong balance sheet and cash flow. We recommend to subscribe for listing gains and long term," it said.Choice Broking Rating: Subscribe At higher price band, Protean is demanding a TTM P/E multiple of 27.2 times, which is at discount to the peer average of 42.5 times. Considering the dominant position in the domestic e-governance market, its capabilities to roll-out nationally critical and population scale greenfield technology solutions and attractive demanded valuations, said Choice Broking with a 'subscribe' tag.Swastika Investmart Rating: Subscribe Protean eGov Tech has a wide range of services and solutions and a secure, scalable, and advanced technology infrastructure.
The financial performance of the company has been mixed, with an increase in its top-line numbers but a decline in its profit, said Swastika Investmart. "However, it faces some risks too, such as its dependence on government contracts, competition from other enterprise solution companies, and regulatory risks. The IPO is coming at a P/E valuation of 29.9 times, and though the company does not have any listed peers, the issue is looking reasonably priced. Considering all these factors, investors may apply," it added.Sushil Finance Rating: Subscribe "Protean eGov Technologies is a pioneer and a market leader in universal, citizen-centric and population-scale e-governance solutions. It has expansion plans to reach neighboring countries for eGovernance. Looking at all the factors, risks and opportunities the investors may apply for the issue with a medium to long-term view," said Sushil Finance.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Also read: Venus Remedies shares rise 4% as firm receives three star export house certificate
Also read: Zerodha's trading platform sees glitch again, says few users unable to see executed orders
Copyright©2025 Living Media India Limited. For reprint rights: Syndications Today
