Protean eGov Technologies IPO is scheduled to open for subscription on November 6, 2023. Protean eGov Technologies Limited (erstwhile NSDL e-Governance Infrastructure Limited) is engaged in the business of developing citizen-centric and population-scale e-governance solutions. This article would provide Protean eGov Technologies IPO details, Positive Aspects, Risk Factors and do complete review.
Protean eGov Technologies IPO Details
| IPO Opening Date | 06-Nov-23 |
| IPO Closing Date | 08-Nov-23 |
| IPO Listing Date | 17-Nov-23 |
| Issue Type | Book Built Issue IPO |
| Face Value | Rs 10 per equity share |
| IPO Price band | Rs 752 to Rs 792 per equity share |
| Lot Size | 18 Shares |
| Listing at | BSE and NSE |
| Total Issue Size | Rs. 490.33 Crores |
| Fresh issue | Rs. Crores |
| OFS | Rs. 490.33 Crores |
| Employee Discount | Rs.75 Per Share |
About Protean eGov Technologies Limited
Company is one of the key IT-enabled solutions companies in India engaged in conceptualizing, developing and executing nationally critical and population scale greenfield technology solutions.
They collaborate with the government and have extensive experience in creating digital public infrastructure and developing innovative citizen-centric e-governance solutions. They were originally setup as a depository in 1995 and created a systemically important national infrastructure for capital market development in India. Company believes its solutions have led to identification of bottlenecks in government services, increased transparency and efficiency, redefined delivery of public services and led to a reduction in service delivery costs.
They were among the leading Indian companies in the e-governance sector in terms of profitability, operating income, operating profit and operating profit margin in Fiscal 2023.
Protean eGov Technologies Ltd – Financial Insights
| Financial Year ending / Period ending (Amt in Crores) | ||||
| Period Ended | 31-Mar-21 | 31-Mar-22 | 31-Mar-23 | 30-Jun-23 |
|---|---|---|---|---|
| Assets | 862.39 | 988.14 | 1,104.10 | 1,133.86 |
| Revenue | 652.03 | 770.18 | 783.87 | 233.17 |
| Profit After Tax | 92.19 | 143.94 | 107.04 | 32.21 |
| Net Worth | 667.46 | 788.00 | 856.94 | 888.10 |
| Reserves and Surplus | 627.14 | 747.43 | 816.33 | 847.48 |
Protean eGov Technologies IPO – Positive Aspects
- The company is a pioneer and a market leader in universal, citizen-centric, and population-scale e-governance solutions.
- The company possesses a large physical infrastructure with a pan-India network and scale, resulting in inclusivity through diversified, granular, and annuity-based service offerings.
- The company has an experienced senior management team backed by strong corporate governance standards and supported by marquee investors.
- The company has a track record of consistently healthy financial performance.
Protean eGov Technologies IPO – Risk Factors
- The company’s IPO proceeds consist only of Offer for Sale (OFS). Under OFS, the amount goes to selling shareholders, and the company would not benefit directly.
- They are substantially dependent on projects awarded by government entities and agencies, and their relationship with GoI entities exposes them to risks inherent in doing business with them, which may adversely affect their business.
- They may not be able to provide business solutions that meet their clients’ requirements, which could lead to clients discontinuing their work with them, potentially harming their business.
- They rely on telecommunications and information technology systems, networks, and third-party infrastructure to operate their business. Any interruption or breakdown in such systems, networks, or third-party infrastructure they rely on, as well as their technical systems, could impair their ability to effectively deliver their products and services.
- Their client contracts can typically be terminated without cause, which could negatively impact their revenues and profitability.
- There are pending litigations against the company. Any adverse decision in such proceedings will have an impact on the company’s financials.
- Investors should review all the risk factors indicated in the RHP (Red Herring Prospectus).
IPO Price valuation of Protean eGov Technologies
Its IPO price band is Rs 752 to 792 per share
- If we consider last year FY23 EPS of Rs 26.48, P/E ratio works out to be 30x
- If we consider last 3 years weighted EPS of Rs 28.99, P/E ratio works out to be 27x
- There are no listed peers, hence we cannot say whether the issue price is over priced or under priced. However considering P/E 27x to 30x, we can say the issue is fully priced.
IPO Grey Market Premium
GMP, or Grey Market Premium, is nothing but the premium at which the shares are trading in the offline market. The Protean eGov Tech IPO GMP currently ranges between Rs 110 and Rs 120. However, this information is based on group discussions on various social networking channels and might not be accurate. Investors can consider this as an indication but should not rely on it entirely
Protean eGov Technologies IPO – Should you Subscribe or Avoid?
The company is a pioneer and market leader in universal, citizen-centric, and population-scale e-governance solutions. The company has generated strong revenue and margin growth in the last few years.
On the other side, the IPO proceeds would go to selling shareholders, and the company would not receive any funds. Its dependency on government entities for projects is a major risk. The company relies on telecom, IT systems, networks, and infrastructure to operate its business, and any disruption among them can affect the company’s business.
Its IPO price is also fully priced.
Investors who understand all these pros and cons, and after referring to the internal and external risk factors in Protean eGovt Tech IPO RHP, can consider investing in this IPO.
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Sir, I am following your blog last 5 years, now i am seeking change in your conclusion that you are providing your clear view, you are just providing the IPO details as mentioned in DHRP or RHP. It is requested to you, kindly provide your clear view on scrip like subscribe, avoid or neutral.
Gautam, I am not SEBI registered investment advisor, hence I have stopped giving my conclusion in majority of the IPO reviews / Stock recommendations.