Protean eGov Technologies shares make flat debut on Dalal Street

The stock of Protean eGov Technologies, formerly NSDL E-Governance Infrastructure, made a flat debut on the exchanges on Monday, November 13. The stock was listed at ₹792 on the Bombay Stock Exchange (BSE) against its issue price of ₹792 apiece.


According to market analysts, are trading with a premium of ₹48 in the unlisted market.

The grey market is an unofficial platform wherein IPO shares can be bought and sold till the listing. Most investors track the grey market premium (GMP) of a stock to get an idea of the listing price.

Analysts expected the stock to trade with around 10% gains owing to the company’s healthy subscription numbers, leading position in the e-governance sector, experienced senior management, and sustainability of earnings growth in the past financial years.

“With Protean eGov Technologies IPO receiving a healthy subscription, we expect the IPO to list at an 8-10% premium to the issue price of Rs 792 per share,” said Dhruv Mudaraddi, research analyst at StoxBox. The analyst said that Protean is a pioneer in the e-governance sector in terms of profitability, operating income, and operating profit in FY23.

Further, Mudaraddi said that building capability around data analytics, healthy financial performance, diversifying offerings with a focus on new sectors, and expanding into more contemporary geographies are key growth drivers for the IT company’s performance in the long term.

Considering the healthy subscription demand and optimistic market mood, Prashanth Tapse of Mehta Equities expected a 10% listing gain against the issue price.

“We like Protean’s unique business model with a niche product portfolio focusing on eGovernance business. While upside looks limited based on valuation parse as the issue was fully priced in discounting all near term triggers,” Tapse said.

The Rs 490-crore IPO was subscribed 23.86 times during the three-day bidding process from November 6 to November 8, with major support from qualified institutional buyers who bought 46.94 times their allotted portion. The retail and NII categories were subscribed 8.9 times and 31.63 times, respectively.

The issue is completely an offer-for-sale (OFS) of 61.91 lakh equity shares. Under the OFS, 360 One Special Opportunities Fund, NSE Investments, HDFC Bank, Axis Bank, Deutsche Bank among others will offload their partial stakes.

Since its an OFS issue, Protean will not receive any proceeds from the public offer. The selling shareholders will be entitled to receive the entire proceeds of the offer.

The company has sold its shares in the range of ₹752-792 per share.

ICICI Securities, Equirus Capital, IIFL Securities and Nomura Financial Advisory and Securities (India) acted as the book-running lead managers to the IPO, while Link Intime India was the registrar. The equity shares of the company will be listed on only BSE.

Protean eGOV Technologies is a leading IT-enabled solutions company engaged in conceptualizing, developing and executing nationally critical and population-scale greenfield technology solutions. It has over 25 years of experience in creating digital infrastructure and governance solutions.

For the June 2023 quarter, the company reported a profit of ₹32.21 crore and a revenue of ₹233.17 crore.

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