Protean eGov Technologies Limited, formerly called NSDL e-Governance Infrastructure, is all set to launch its IPO this month. It had filed its Draft Red Herring Prospectus with the market watchdog Securities and Exchange Board of India (SEBI) a few years back and received the regulator’s nod. The IPO will remain open from 6th to 8th November, 2023. Its price band has been set at Rs. 752 to Rs. 792/share.
Most widely known for being one of India’s two depositories, Protean is an IT-enabled solution provider and collaborates with various Ministries of the Government of India to build technologically advanced public digital infrastructure. It plans to launch an initial public offering of around Rs. 490 crore via an entire offer for sale of 61.9 lakh shares.
If you want to invest in the Protean eGov Technologies Limited IPO, go through this blog. You’ll come to know some of the important details which will help you form an informed investment decision.
Table of Content
IPO Details
The following table provides all the crucial details you need to know about Protean’s IPO:
| IPO Opening Date | 6 November 2023, Monday |
| IPO Closing Date | 8 November 2023, Wednesday |
| Face Value | Rs. 10 per share |
| Lot Size | 18 shares |
| Price Band | Rs. 752 to Rs. 792 per share |
| Total IPO Size | 6,191,000 shares(aggregating up to Rs. 490.33 crore) |
| Offer for Sale | 6,191,000 shares of Rs. 10(aggregating up to Rs. 490.33 crore) |
| Employee Reservation | 1.5 lakh equity shares |
| Employee Discount | Rs. 75 per share |
| Listing Date | 17 November 2023, Friday |
| Listing Type | Book Built Issue IPO |
| Listed On | Bombay Stock Exchange (BSE) |
About Protean eGov Technologies
Protean eGov Technologies is an important market player when it comes to IT-enabled business solution market companies in India. It conceptualises, develops and executes technology solutions for individuals, companies and governments. Protean has collaborated with the Government of India and has come up with an advanced public digital infrastructure. The collaboration has resulted in the development of citizen-centric, e-governance solutions.
Protean’s journey started in 1995 as a depository. It had established a nationwide infrastructure for the development of the capital market in India. The company has been instrumental in developing some of the most important technology infrastructure projects in India. Some of the key ministries Protean has worked with include the Ministry of Finance, Ministry of Education and Ministry of Communications.
The business solutions offered by Protean have improved transparency and efficiency, reduced costs of service delivery and redefined the delivery of public services.
Protean has modernised India’s direct tax infrastructure through key projects like PAN issuance, Online Tax Accounting Systems, and Tax Information Network. This entity has built the core IT infrastructure as a CRA (Central Recordkeeping Agency) for NPS (National Pension System).
If you analyse Protean’s operating income, profitability and operating profit margin in financial year 2020, you’ll see that it was the market leader in the e-governance sector in India.
IPO Tentative Timeline
Check the tentative timeline of the IPO of Protean eGov Technologies Limited:
| IPO Opening Date | 6 November 2023, Monday |
| IPO Closing Date | 8 November 2023, Wednesday |
| Basis of Allotment | 13 November 2023, Monday |
| Initiation of Refunds | 15 November 2023, Wednesday |
| Credit of Shares to Demat Account | 16 November 2023, Thursday |
| Listing Date | 17 November 2023, Friday |
| Cut-off Time for UPI Mandate | 5 PM, 8 November 2023, Wednesday |
IPO Lot Size
Check the lot size for the IPO of Protean eGov Technologies Limited IPO:
| Applications | Lots | Shares | Amount |
| Retail (Min) | 1 | 18 | Rs. 14,256 |
| Retail (Max) | 14 | 252 | Rs. 1,99,584 |
| S-HNI (Min) | 15 | 270 | Rs. 2,13,840 |
| S-HNI (Max) | 70 | 1,260 | Rs. 9,97,920 |
| B-HNI (Min) | 71 | 1,278 | Rs. 1,012,176 |
Company Financials
Check the financial metrics of Protean to make a more informed investment decision:
| Particulars | For the Financial Year Ending (Figures in Rs. Million) | ||
| March 31, 2021 | March 31, 2020 | March 31, 2019 | |
| Total Assets | 3,882.68 | 3,500.21 | 3,303.80 |
| Total Liabilities | 1,784.66 | 1,682.81 | 1,769.81 |
| Total Expenses | 5,360.25 | 5,970.23 | 6,080.07 |
| Total Revenue | 6,520.27 | 7,546.40 | 7,885.04 |
| Profit After Tax | 921.85 | 1,218.54 | 1,235.30 |
| EBITDA | 1,337.38 | 1,862.51 | 2,102.82 |
Protean eGov Technologies IPO Objectives and Details
Formerly known as NSDL e-Governance Infrastructure, Protean eGov Technologies has been planning to launch an IPO of Rs. 1200 – 1300 crore. While the company had plans to launch its IPO much earlier, its plans were jeopardised because of a weak macro environment and subdued equity market conditions. Now, the company has finally decided to launch its IPO but with a reduced OFS size of Rs. 490.3 crore at the upper end of its price band.
Protean eGov’s IPO is entirely an Offer for Sale issue of 6,191,000 shares by several shareholders. The participating shareholders include HDFC Bank, Axis Bank, Union Bank of India, UTI and Deutsche Bank AG. Other shareholders are 360 One Special Opportunities Fund, 60 One Special Opportunities Fund Series 2, 360 One Special Opportunities Fund Series 3, 360 One Special Opportunities Fund Series 4 and 360 One Special Opportunities Fund Series 5.
Read on to know why you should invest in the Protean eGov IPO, i.e. its strengths.
Also Read: IPO investment strategy
Strengths of Protean eGov Technologies
In this section, we’ll focus on the strengths of Protean eGov Technologies:
- Protean eGov Technologies is a market leader when it comes to IT-enabled e-governance services. Management of TIN (Taxpayer Identification Number), NPS (National Pension Yojana), APY (Atal Pension Yojana) and processing of PAN are some of the e-governance services provided by this platform.
- The company has made substantial investments in financial and e-governance technology. As a result, it boasts of a scalable, secure and advanced technology infrastructure.
- Protean eGov has a large physical infrastructure which is a significant advantage. Moreover, the company has its network present all over India. Its scale facilitates inclusion.
- The services offered by Protean are annuity-based, diverse and granular. Its client base across B2B, B2C and B2G segments provides it with revenue on a per-transaction basis, which keeps concentration risks low.
Risks Involved
Check the risks involved with investing in the IPO of Protean eGov:
- Protean eGov derives a substantial portion of its revenue from various governmental organisations and agencies. The entity’s relationship with such entities exposes it to risks inherent in such relationships. Such risks may have a negative impact on the overall financial health of the company.
- Protean’s reputation may be severely damaged if sensitive and confidential information gets leaked.
- Clients may discontinue their relationship with Protean eGov if the latter’s business solutions prove to be unsatisfactory.
Conclusion
If you give this blog a read, you’ll come to know the important details of Protean eGov Technologies Limited’s IPO. This company’s collaboration with the Government of India has led to the creation of cutting-edge public digital infrastructure.
You can consider investing in its IPO as Protean is a market leader in its sector and holds the potential for high returns in the future.
Also Read: How does an IPO work?
Frequently Asked Questions
You have to log in to your UPI handle and only then can you approve the UPI mandate request for this particular IPO. It is a necessary step for completing the IPO application process.
ICICI Securities Limited, IIFL Securities Limited, Equirus Capital Private and Nomura Financial Advisory and Securities (India) are the Book-Running Lead Managers.
The opening date of the IPO is 6 November 2023 and the closing date is 8 November 2023.
Protean eGov Technologies is a professionally managed company. It does not have any promoters.
