Protean eGov Tech Announces IPO Opening on Nov 6 with Price Band of Rs 752-792 Per Share

Protean eGov Technologies, formerly known as NSDL E-Governance Infrastructure, has unveiled details about its upcoming initial public offering (IPO), setting a price band of Rs 752-792 per share for the Rs 490-crore IPO. Let’s delve into the specifics of this significant market development.

IPO Details and Timeline

The IPO, primarily an offer-for-sale (OFS) by existing shareholders, will open for subscription on November 6 and close on November 8. The anchor book of the offer is scheduled to open for a day on November 3. Notably, the OFS size has been reduced to 61.91 lakh equity shares from the initial plan of 1.28 crore equity shares.

The offer also includes a reserved portion of 1.5 lakh equity shares for the company’s employees at a discounted rate of Rs 75 per share compared to the final offer price.

Selling Shareholders and Proceeds

The shareholders participating in the OFS include prominent entities such as IIFL Special Opportunities Funds, NSE Investments, Administrator of the Specified Undertaking of the Unit Trust of India, HDFC Bank, Axis Bank, Deutsche Bank AG, Punjab National Bank, and Union Bank of India.

At the upper end of the price band, the IPO is anticipated to raise Rs 490.33 crore. Since it is an OFS, the entire proceeds will be directed to the selling shareholders, and the company will not receive any funds from the IPO.

Investor Categories and Bidding

The IPO has allotted half of its size for qualified institutional investors, 35% for retail investors, and the remaining 15% for non-institutional investors. Investors can bid for a minimum of 18 equity shares and in multiples of 18 equity shares thereafter.

Company Overview and Financial Performance

Protean eGov Technologies is a significant player in India’s IT-enabled solutions landscape, specializing in developing critical and large-scale greenfield technology solutions. With a strong focus on collaborating with the government, the company has a track record of creating digital public infrastructure and delivering innovative citizen-centric e-governance solutions.

For the quarter ended June 30, 2023, the company reported a profit after tax (PAT) of Rs 32.21 crore and a revenue from operations of Rs 220.4 crore, reflecting its financial stability and growth trajectory.

Lead Managers and Listing

ICICI Securities, Equirus Capital, IIFL Securities, and Nomura Financial Advisory and Securities (India) are the book-running lead managers for the IPO. Upon successful completion, shares of Protean eGov Technologies will be listed on the BSE, offering investors an opportunity to participate in the company’s growth journey in the evolving digital and technology space.