Protean eGov IPO: Check out 10 key things to know from RHP before investing

Protean eGov Technologies IPO opened for subscription on Monday, November 6 and will close on Wednesday, November 8. Protean eGov IPO has received positive response on day 2, where the offer ha been subscribed 2.54 times, so far, according to data available on BSE. Protean eGov Technologies IPO retail investors portion was subscribed 3.27 times, NII portion was subscribed 4.45 times, and Qualified Institutional Buyers (QIB) portion was booked 6%.

On day 1, Protean eGov Technologies IPO subscription status was 1.80 times.

Protean eGov Technologies IPO price band has been fixed in the range of ₹752 to ₹792 per equity share of face value of ₹10. The floor price is 75.20 times and the Cap Price is 79.20 times the face value of the equity shares.

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The total offer size of Protean eGov IPO comprises of offer for sale (OFS) up to 6,191,000 equity shares by the selling shareholders. Protean eGov Technologies IPO plans to fetch ₹490.33 crore.

Here are 10 key things from the Red Herring Prospectus (RHP) that investors might want to know before subscribing to the issue.

Protean eGov Technologies IPO marquee shareholders

As per the RHP, shareholders include financial institutions such as NSE Investments Limited, 360 ONE Special Opportunities Fund (formerly known as IIFL Special Opportunities Fund), SUUTI, Citicorp Finance India Limited and certain public and private sector banks such as State Bank of India, Punjab National Bank, Union Bank of India, Bank of Baroda and Canara Bank, HDFC Bank Limited, Axis Bank Limited, Deutsche Bank A.G, the Hong Kong and Shanghai Banking Corporation Limited, Standard Chartered Bank, among others.

Protean eGov Technologies IPO selling shareholders

The OFS comprises of up to 459,617 equity shares by 360 One Special Opportunities Fund, up to 320,177 equity shares by 360 One Special Opportunities Fund –Series 2, up to 148,197 equity shares by 360 One Special Opportunities Fund –Series 3, up to 396,843 equity shares by 360 One Special Opportunities Fund –Series 4, up to 309,225 equity shares by 360 One Special Opportunities Fund –Series 5, up to 1,783,395 equity shares by NSE Investments Limited, up to 243,175 equity shares by Administrator of the Specified Undertaking of the Unit Trust of India, up to 705,674 equity shares by HDFC Bank Limited, 712,077 equity shares by Axis Bank Limited, up to 712,077 equity shares by Deutsche Bank A.G. and 400,543 equity shares by Union Bank of India, according to RHP.

Protean eGov Technologies Promoters

Protean eGov Technologies in its RHP has stated that the company is a professionally managed company and does not have any identifiable promoter in terms of the SEBI ICDR Regulations and the Companies Act.

Protean eGov Technologies industry

The application of ICT to government operations and public service delivery is referred to as e-governance. Providing support and streamlining governance for the government, people, and enterprises is the strategic goal of egovernance. Technology and platform updates, along with state and federal e-governance programmes, will drive the expansion. According to the CRISIL report, the goal of e-governance is to improve the friendliness, convenience, transparency, and economy of contacts between the government and the public, government and private businesses, and inter-agency ties.

Protean eGov Technologies market share

Protean holds over 45% of the market share in PAN allocation, with over 2.2 million PAN Applications per month in the nine months ended December 31, 2022. Leading PAN service provider in India, Protean eGov Technologies Limited, held a 44.9% market share in the new PAN card allotments in Fiscal 2023 (the nine months that concluded on December 31, 2022). On behalf of the Indian government’s Income Tax Department, the firm handles PAN applications.

Protean handled over 2 million PAN applications every month, including applications for new PAN cards and PAN card updates, on average during the nine months that concluded on December 31, 2022, with 101,000 PAN applications handled daily. Additionally, Protean developed and invented the paperless Aadhaar e-KYC system.

Also Read: Protean eGov Technologies IPO: Firm mobilises ₹143.5 crore from anchor investors ahead of issue

Protean eGov Technologies business

According to the CRISIL research, one of the leading providers of IT-enabled solutions in India is Protean eGov Technologies, which is involved in the conceptualization, development, and implementation of greenfield technology solutions that are population-scale and vital to the country. The business works with the government and has a wealth of expertise in building digital public infrastructure and creative, citizen-focused e-governance solutions. Some of the most important and significant technological infrastructure projects in India have been principally designed and implemented by the firm.

Protean eGov Technologies financials

Protean eGov Technologies profit for the year/period was ₹921.87 million, ₹1,439.37 million, ₹1,070.42 million, ₹212.71 million and ₹322.11 million in fiscals 2021, 2022 and 2023 and in the three months ended June 30, 2022 and June 30, 2023, respectively. In the fiscal years 2021, 2022, and 2023, as well as the three months ended June 30, 2022 and June 30, 2023, respectively, the company’s adjusted EBITDA was ₹848.43 million, ₹1,238.34 million, ₹1,179.64 million, ₹216.77 million, and ₹340.88 million. In comparable periods, the adjusted EBITDA margin was 14.07%, 17.92%, 15.89%, 13.83%, and 15.47%, respectively.

Protean eGov Technologies IPO’s peers

There aren’t any listed businesses in India doing something comparable to what the company does.

Also Read: Protean eGov Technologies IPO to open on November 6: Check 10 key things to know

Protean eGov Technologies IPO’s key risks

The business depends heavily on projects that are awarded by government agencies and entities, and the commercial relationship with GoI entities exposes the company to risks that are inherent in doing business with them. These risks have the potential to negatively impact its operations, financial condition, and business results.

Second, in order to run its business, the company depends on networks, telecommunications, information technology systems, and third-party infrastructure. Any disruption or malfunction in these networks, infrastructures, or the technical systems could make it more difficult for the company to provide goods and services to customers.

Protean eGov Technologies IPO Lock-in period

Of the equity shares granted to anchor investors, 50% will be locked in for 90 days from the date of allotment, and the remaining 50% will be locked in for 30 days from the date of allotment.

Also Read: Protean eGov Technologies IPO to open on November 6: Check 10 key things to know

Protean eGov Technologies IPO GMP today

Protean eGov IPO GMP today or grey market premium is +100. This indicates Protean eGov Technologies share price were trading at a premium of ₹100 in the grey market on Tuesday, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Protean eGov Technologies share price was indicated at ₹892 apiece, which is 12.63% higher than the IPO price of ₹792.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

Also Read: Protean eGov Technologies IPO: GMP, subscription status, other details. Apply or not?

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