Protean eGov Technologies IPO opens today; 10 things to know

Protean eGov Technologies, previously known as NSDL e-Governance Infrastructure, is set to launch its three-day initial public offering (IPO) today. Ahead of the IPO, the e-governance solutions developer raised ₹143.53 crore from 18 anchor investors at the upper end of the price band of ₹752-792 per share. Key investors who participated in the anchor book included LIC Mutual Fund, Baroda BNP Paribas Mutual Fund, Aditya Birla Sun Life Insurance, SBI Life Insurance, SBI General Insurance, Societe Generale, among others.

Here are 10 things to know before Protean eGov Technologies IPO open for subscription.

IPO dates

The public issue will open for subscription on Monday, November 6, and will close on Wednesday, November 8.

IPO Listing

Shares of Protean eGov Technologies is expected to be listed on BSE on November 13.

IPO Price Band

The price band of the IPO has been set at ₹752 to ₹792 per share.

IPO size

The public issue is completely an offer-for-sale (OFS) of 61.91 lakh equity shares by the existing shareholders, and there is no fresh issue component. At the upper end of the price band, the Protean is expected to fetch ₹490.33 crore. The investors who are selling shares in the OFS are 360 One Special Opportunities Fund, HDFC Bank, Axis Bank, Deutsche Bank A G, Union Bank of India, and NSE Investments.

IPO lot size

The lot size is 18 equity shares and in multiples thereof. The minimum investment amount required by retail investors is ₹14,256 for 1 lot or 18 shares, and maximum is ₹199,584 for 14 lots, or 252 shares.

Anchor Investors

The company raised ₹143.53 crore from 18 anchor investors at the upper end of the price band of ₹752-792 per share. The anchor investors included LIC Mutual Fund, Baroda BNP Paribas Mutual Fund, Aditya Birla Sun Life Insurance, SBI Life Insurance, SBI General Insurance, Societe Generale, among others.

IPO Reservation

As per the document filed with the SEBI, the company has reserved up to 50% of the net issue for qualified institutional buyers (QIB), up to 35% for retail investors, and remaining 15% for non-institutional investors (NII). The company has also reserved 1.5 lakh equity shares for employees at a discount of ₹75 per share to the final offer price.

Financial performance

The company reported profit after tax (PAT) at ₹32.21 crore and revenue at ₹233.17 crore for the quarter ended June 30, 2023. For the financial year ending March 31, 2023, Protean posted PAT at ₹107.04 crore, down 25.6% from ₹143.94 crore in FY22. The revenue increased marginally by 1.8% to ₹783.87 crore from ₹770.18 crore in the previous fiscal.

IPO GMP 

Protean shares are available at a premium of ₹120 per equity share in the grey market today. With the price band of ₹792, the stock is seen listing at ₹912 (cap price + today's GMP), a potential premium of 15.15% over issue price.

About Protean eGov Technologies

Established in December 1995, Protean eGov Technologies is involved in developing citizen-centric and population-scale e-governance solutions. Since December 2022, the company has developed 19 projects across seven ministries in India, while it is a market leader in the provision of e-governance services such as management of PAN (Permanent Account Number) processing, NPS (National Pension System), TIN (e Tax Information Network), and Atal Pension Yojana. The company generates around 95% of revenues from taxation, CRA pension and ID services. Tax Services was the largest component of contribution, which was around 58% in FY23.

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