The IPO allotment will take place on November 13, while the share listing is likely to take place on November 17. Ahead of IPO, Protean eGov Technologies (formerly known as NSDL E-Governance Infrastructure) mobilised a little over Rs 143 crore from anchor investors on November 3.
Protean eGov Technologies IPO GMP Today
According to market observers, Protean eGov Technologies is currently trading Rs 120 higher in the grey market. The Rs 120 grey market premium, or GMP is about 15.15 percent higher than its upper issue price of Rs 792 per share. This means the grey market is expecting a 15.15 percent listing gain from the public issue. Shares of the company will be listed on the BSE.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Protean eGov Technologies IPO Quota
Half of the issue size has been reserved for qualified institutional investors, 35 percent for retail investors, and the remaining 15 percent for non-institutional investors.
Protean eGov Technologies IPO Lot Size
Investors can bid for a minimum of 18 equity shares and in a multiple of 18 equity shares thereafter. Its price band has been fixed at Rs 752-792 per share
Protean eGov Technologies IPO: Should You Subscribe ?
Giving ‘Subscribe—Long Term’, Anand Rathi said in its note, “The company is a pioneer and market leader in universal, citizen-centric and population-scale e-governance solutions. The company is valued at a P/E ratio of 29.9 of its FY23 earnings. We believe that issue is fairly priced and recommend a ‘Subscribe-Long Term’ rating to the IPO.”
Another brokerage, Choice Broking, has also assigned a ‘Subscribe’ rating for the issue. It said the company has a dominant position in the domestic e-governance market, its capabilities to roll out nationally critical and population-scale greenfield technology solutions, and its attractively demanded valuations.
Recommending investors to subscribe, Avinash Gorakshkar, head of research at Profitmart Securities, said, “Even though the issue is completely OFS, the company has improved its business model, and it has almost monopoly business in digital UPI transactions. So, the issue is expected to receive a strong response and may list at a handsome premium. However, my suggestion to investors is to go deep and invest for a medium- to long-term time horizon.”
Protean eGov Technologies IPO Purely An OFS
The Protean eGov Technologies IPO is purely an offer-for-sale (OFS) by existing shareholders. The OFS size has been reduced to 61.91 lakh equity shares from 1.28 crore equity shares planned earlier. Also, the offer includes a reservation of 1.5 lakh equity shares for the company’s employees at a discount of Rs 75 per share to the final offer price.
Those offering shares in the OFS are: 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 expected to fetch Rs 490.33 crore.
Since the IPO is completely an OFS, the entire proceeds will go to the selling shareholders, and the company will not receive any funds from the issue.
About Protean eGov Technologies
Protean eGov Technologies is one of the key IT-enabled solution companies in India engaged in conceptualizing, developing, and executing nationally critical and population-scale greenfield technology solutions.
The company collaborated with the government and has extensive experience in creating digital public infrastructure and developing innovative citizen-centric e-governance solutions. Originally set up as a depository in 1995, it created a systemically important national infrastructure for capital market development in India.
For the three months ended June 30, 2023, the company posted a profit after tax (PAT) of Rs 32.21 crore and a revenue from operation of Rs 220.4 crore. ICICI Securities, Equirus Capital, IIFL Securities, and Nomura Financial Advisory and Securities (India) are the book-running lead managers to the issue.
