Protean eGov Technologies IPO: Review, Valuation, Date & GMP

Protean eGov Technologies Limited - Complete Overview

Established back in 1995, Protean eGov Technologies Limited holds a prominent position in India as an IT-enabled solutions provider, focusing on the development and execution of large-scale technology solutions of national importance.

Formerly known as NSDL e-Governance Infrastructure Limited, the company played a crucial role in creating a nationally significant infrastructure for the development of the Indian capital market.

In Fiscal 2023, the company emerged as one of the leading Indian firms in the e-governance sector, demonstrating strong profitability, operating income, operating profit, and operating profit margins.

Since its inception and up to June 30, 2023, the company has successfully implemented and managed 19 projects across seven ministries and autonomous bodies.

Some notable contributions by the company include:

• Modernizing India's direct tax infrastructure through initiatives like PAN issuance and the TIN, which includes OLTAS.
• Strengthening the nation's old-age security system by establishing the core IT infrastructure as a Central Recordkeeping Agency ("CRA") for the National Pension System ("NPS").
• Facilitating a universal social security system for all Indians, especially those in the unorganized sector, by creating the necessary technology infrastructure as a CRA for the Atal Pension Yojana ("APY").
• Playing a key role in the India Stack, a collection of application programming interfaces ("APIs") that enable governments, businesses, startups, and developers to utilize a unique digital infrastructure for creating solutions that are presence-less, paperless, and enable cashless service delivery. Additionally, the company has supported the BFSI sector by offering Aadhaar-based identity authentication and e-sign services as a licensed certifying authority authorized by the Controller of Certifying Authorities. The company was also appointed as a registrar for enrolling citizens for Aadhaar.
• Enhancing access to education and skill financing through the creation of efficient digital marketplaces that allow the discovery of financial resources via platforms such as Vidya Lakshmi and Vidyasaarathi.
• Contributing to and endorsing open digital building blocks, including the Open Network for Digital Commerce ("ONDC"), which serves various sectors such as e-commerce, mobility, healthcare, agriculture, and education. The company is a significant and early contributor to the open-source community and the protocols that power ONDC.

 

 

What does the company do? 

Protean eGov Technologies Limited holds a prominent position in India as an IT-enabled solutions provider, focusing on the development and execution of large-scale technology solutions of national importance.

 

IPO Overview

The Protean eGov Technologies IPO date is slated from November 6, 2023, to November 8, 2023. The IPO is expected to be listed on November 17, 2023 on BSE.

The Protean eGov Technologies IPO price falls within the range of Rs. 752 to Rs. 792 per share, and the total issue size for this upcoming IPO is Rs. 490.33 Crores.

In terms of allotment, the company has allocated 50% to institutional investors, 15% to non-institutional investors, and 35% to retail investors.

 

Protean eGov Technologies Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	6 November 2023
IPO Closing Date	8 November 2023
IPO Allotment Date	13 November 2023
Refund initiation	15 November 2023
IPO Listing Date	17 November 2023

 

Protean eGov Technologies Limited IPO Details

IPO Opening & Closing Date	6 November to 8 November 2023
Face value	Rs. 10 per Share
Issue Price	Rs. 752 to Rs. 792 per Share
Lot Size	18 Shares
Price of 1 lot	Rs. 14,256
Issue Size	6,191,000 Shares (aggregating up to Rs. 490.33 Cr)
Offer for Sale	6,191,000 shares of Rs. 10 (aggregating up to Rs. 490.33 Cr)
Employee Discount	Rs. 75 per Share
Listing at	BSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Pvt. Ltd.

 

Protean eGov Technologies Limited IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	14 Lot
Minimum Lot Investment (HNI)	15 Lot
Maximum Lot Investment (HNI)	70 Lot

 

 

Protean eGov Technologies Limited IPO Reservation 

Institutional share Portion	50%
Non-institutional share Portion (HNI)	15%
Retail share Portion	35%

 

Company Financial

Amount in Crores

Period	31 Mar 2023	31 Mar 2022	31 Mar 2021
Total Assets	1,104.10	988.14	862.39
Total Revenue	783.87	770.18	652.03
PAT	107.04	143.94	92.19
Net worth	856.94	788.00	667.46
Reserve & Surplus	816.33	747.43	627.14
Total Borrowings

 

The leadership trend and statistics of the company for the last three Fiscals and the three months ended June 30, 2022 and June 30, 2023

Particular	FY 21	FY 22	FY 23
PAN Cards sent to printer (million)	29.65	35.51	38.63
PANs Verified (million)	937.19	2,122.52	2,412.89
NPS – New Subscriber Base (million)	0.83	0.97	1.33
NPS – Cumulative Subscriber Base (million)	14.03	15.00	16.32
NPS – AUM (Rs. million)	5,592,870.80	6,945,539.22	8,421,230.49
Atal Pension Yojana – New Subscriber Base (million)	6.91	8.23	9.67
Atal Pension Yojana –Cumulative Subscriber Base	28.05	36.28	45.95
Atal Pension Yojana – AUM (Rs. million)	156,871.07	209,225.80	272,227.38
Aadhaar Authentication (million)	179.31	275.03	276.76
e-KYC (million)	91.05	174.41	246.01
e-Sign (million)	35.60	82.03	101.07

 

Objective of the Issue 

This is an offer for sale, and the proceeds will be received by the selling shareholders. As a result, the company will not benefit financially from these proceeds.

 

Promoters and Management of Protean eGov Technologies Limited

The company is professionally administered and does not have any discernible promoter.

 

Peer Comparison 

According to Protean eGov Technologies IPO DRHP, there are no existing companies in India that offer identical business operations and services as the Company, making direct comparisons challenging.

 

IPO's Valuations

Protean eGov Technologies' IPO price range is established at Rs. 752 to Rs. 792 per share, with an EPS of 26.48. If we assess the IPO valuation using the upper end of the issue price, the company's P/E ratio stands at 29.91.

 

Dividend Policy 

The company has issued dividends of Rs 10, Rs 10, and Rs 9 per share in the financial years 2023, 2022, and 2021, respectively. It's crucial to emphasize that past dividend payments may not reliably predict the company's future dividend policy.

 

IPO's Strengths 

• A trailblazer and dominant force in universal, citizen-centric, and large-scale e-governance solutions.
• A technology infrastructure that is not only secure but also scalable and cutting-edge.
• Extensive physical infrastructure with nationwide coverage, contributing to widespread inclusion.
• Offering a range of diversified, granular, and subscription-based services.
• A consistent history of strong financial performance.
• A seasoned senior management team, upheld by robust corporate governance practices and bolstered by renowned investors.

 

IPO Weaknesses 

• The company relies significantly on government entities and agencies for project awards.
• There are ongoing legal disputes involving the company.
• The company's sales cycle is extended and influenced by numerous external factors beyond its control.
• The company may not meet the eligibility criteria specified for high-value government contracts.
• Global and Indian enterprise solution companies pose competition to the company.
• The company is obligated to obtain, renew, or maintain the necessary statutory and regulatory permits, licenses, and approvals for its operations.
• The company has experienced negative cash flows from its operational activities in the past.
• Compliance with regulations like Know Your Customer (KYC) and data privacy requirements may lead to additional expenditures that could negatively impact the company's financial health and cash flows.

 

 

IPO GMP Today

The Latest GMP of Protean eGov Technologies is Rs. 130

 

Conclusion

This company specialises in e-governance projects, carving out a unique niche. With a track record of numerous successful projects, it is now eyeing expansion into neighbouring countries. The company's promising outlook suggests that investors should consider allocating their funds to this issue, after a thorough assessment of the essential factors, for maximum returns.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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