Protean eGov Technologies debuts at IPO price on BSE

© Reuters.

Protean eGov Technologies, a prominent player in India’s e-governance sector, commenced trading on the Bombay Stock Exchange (BSE) on Monday, matching its initial public offering (IPO) price of ₹792 per share. The company’s public issue had garnered significant interest from investors, being oversubscribed by nearly 24 times during the subscription period from November 6-8.

The IPO was purely an offer for sale of 61.9 lakh shares, with selling shareholders set to receive all proceeds since no new shares were issued. The successful management of the issue was led by a consortium including ICICI Securities, Equirus Capital, IIFL Securities, and Nomura Financial Advisory and Securities.

Despite trading at a ₹94 premium in the unlisted market prior to its debut, analysts from Mehta Equities have suggested that there may be limited upside potential due to the company’s valuation. However, the market capitalization of Protean stands robust at ₹3,203 crore with a PE ratio of 29.9 times FY23 numbers.

Protean’s recent financial performance underscores its strong position in the industry. For the quarter ending June 2023, the company reported a revenue increase of 40% to ₹220 crore (INR100 crore = approx. USD12 million) and a profit surge of 52% to ₹32.2 crore. Over its more than 25 years of operation, Protean has collaborated with seven Indian ministries to develop and implement 19 e-governance stacks that are crucial for digital public infrastructure and citizen-centric solutions.

The company’s growth trajectory is supported by its diversified offerings that target new sectors and geographic expansion. As of June 30, 2023, it has been involved in executing projects that have shown a compound annual growth rate (CAGR) of 10.9 percent and 7.8 percent during FY21-23.

Among the noteworthy investors participating in Protean’s offer-for-sale were HDFC Bank, Axis Bank, Union Bank of India, NSE Investments, and 360 One Special Opportunities Fund. Additionally, Protean holds a commanding market share in several sectors, including an impressive 100 percent in the Atal Pension Yojana (APY).

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