Protean eGov Technologies Limited IPO

Incorporated in 1995, Protean eGov Technologies Limited is one of the key IT-enabled solutions providers in India. The company is engaged in the development and execution of critical national-level greenfield technology projects. As of 30 June 2023, the company has implemented and managed 19 projects across seven ministries and autonomous bodies. It collaborates with the government to create digital public infrastructure and citizen-centric e-governance solutions. 

Some of the company’s projects include a Permanent Account Number or PAN, a Tax Information Network or TIN, building the core IT infrastructure for the National Pension System or NPS, Atal Pension Yojana, National Pension Scheme, Aadhar Authentication, e-KYC and E-sign. It works with the Ministry of Finance, the Ministry of Education, the Ministry of Information and Broadcasting, Ministry of Electronics and Information Technology, the Ministry of Skill Development and Entrepreneurship. It operates a phygital (physical + digital) model with a pan-India physical network of 1,67,000 centres. 

Between FY21 and FY23, it has seen a CAGR rise of 7% in its revenue from operations and 5% in its profit. Moreover, India’s taxpayer base is expected to expand at a CAGR of 9-10% to reach 170 million by FY26. In addition, some government schemes, such as Pradhan Mantri Jan Dhan Yojana and Pradhan Mantri Mudra Yojana, require a PAN card as proof of identity. These factors necessitate the issuance of PAN cards, which could be beneficial for the company. 

And now, Protean eGov Technologies Limited is coming out with its initial public offer (IPO). The entire IPO will be an offer for sale and the money raised through this IPO will be received by the selling shareholders. Its shares will be listed on the BSE.

Here are key details about the Protean eGov Technologies Limited IPO:

Company Name	Protean eGov Technologies Limited Limited		Company Type	Private
Company Established On	1995		Protean eGov Technologies Limited IPO Opening Date	November 6, 2023
Protean eGov Technologies Limited IPO Closing Date	8 November 2023		Protean eGov Technologies Limited IPO Allotment Status	13 November 2023
Credit of Shares to the Demat Account	16 November 2023		Protean eGov Technologies Limited IPO Listing Date	17 November 2023
Protean eGov Technologies Limited IPO Face Value	₹10 per share		Protean eGov Technologies Limited IPO Lot Size	18 shares
Protean eGov Technologies Limited IPO Issue Size	Approx ₹490 crore		Protean eGov Technologies Limited IPO to be Listed on	BSE
Protean eGov Technologies Limited IPO Price band	₹752 – ₹792 per share		Employee Discount	Rs 75 per share

Financial snapshot

Particulars	FY21	FY22	FY23	Q1FY24
Revenue	₹ 603  crore	₹ 690 crore	₹ 742 crore	156
Net Profit/Loss	₹ 92.1 crore	₹ 143 crore	₹ 107 crore	21.2

Strengths and opportunities

1. India’s top IT-enabled e-governance service provider in terms of profitability and operating income in FY23, according to a CRISIL report. 
2. Secure, scalable and advanced technology infrastructure wherein its ONDC (Open Network for Digital Commerce) platform is live in 400+ cities, its TIN project has handled 1,56,132 e-tax transactions per hour on a day in FY23 along with over 3.22 million PAN applications on average per month.
3. Its PAN and TIN facilitation centres cover over 12,000 pincodes across 700+ districts in India as of 30 June 2023.
4. Diversified offerings that cater to various sectors such as tax administration, pension record keeping solutions, national identity and identity authentication solutions, and education and skill financing solutions. 
5. Track record of healthy financial performance with EBITDA margins of 14%, 17% and 15% in FY21, FY22 and FY23 respectively.  
6. Backed by marquee investors such as NSE Investments, IIFL, SUUTI, Citicorp Finance, State Bank of India, Punjab National Bank, Union Bank of India, Bank of Baroda, Canara Bank, HDFC Bank, Axis Bank, Deutsche Bank A.G, The Hong Kong and Shanghai Banking Corporation, Standard Chartered Bank etc.

Risks and threats

1. Substantially dependent on projects awarded by government entities and agencies. Also, these contracts can be terminated from clients once the project is completed. 
2. Witnessed an attrition rate of 3%, 17% and 16% in FY21, FY22 and FY23, respectively, in its employees.
3. Subjected to selection criteria set for high value contracts by the Government. 
4. Faces competition from CDSL Ventures, CMS Computer, Computer Age Management Services, CSC E-Governance Services, Karvy Data Management Services, Kfin Technologies Private, 
5. Total trade receivables stood at ₹208 crore in FY23. Any delay in the collection of receivables from clients could impact its business operations. 
6. Derives a significant portion of its revenue from a limited number of clients.

Protean eGov Technologies Limited IPO details

Protean eGov Technologies Limited IPO date

According to the offer document filed by the company with the SEBI, the Protean eGov Technologies IPO’s opening date – in other words, the Protean eGov Technologies IPO launch date – will be 6th November 2023. The Protean eGov Technologies IPO closing date is 8th November 2023. After this, investors will be updated about the allotment status on 13th November 2023.

Investors, who have been allotted shares, can expect them to be credited to their demat account on 16th November 2023. The Protean eGov Technologies IPO listing date is 17th November 2023. The listing date is the date on which the shares of a company get listed on BSE

|Protean eGov Technologies Limited IPO Price Band

The entire IPO is an offer for sale. The Protean eGov Technologies IPO price band has been set between ₹752 and ₹792 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Protean eGov Technologies IPO listing price will be determined on 17th November 2023. The listing price is the price at which a company’s shares debut on the stock exchanges.

|Protean eGov Technologies Limited IPO Lot size

The Protean eGov Technologies IPO details have been declared. The Protean eGov Technologies IPO lot size is set at 18 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Protean eGov Technologies IPO issue size is approx ₹490 crore. 

How to Apply for ipo
first you need to open demat and trading account