IPO listed on 13 Nov'23
Protean eGov Technologies Ltd
Minimum Investment
₹ 14,256 / 18 shares
Grey market premium
₹ 95 (12% premium)
Issue price
₹ 792
Listing price
₹ 792
Listing gains
0%
Listing on
Nov 13, 2023
Our Verdict:
Neutral
- The firm has shown steady financial growth and solidified its position as a market leader in e-governance solutions, along with a history of generous dividend payouts. In terms of valuation, the IPO seems reasonably priced with a P/E ratio of 25x on FY24's projected earnings.
- On the other hand, a significant point to consider is that there has been a decline in the company's return ratios, along with a significant dip in the net profit margin, which raises concerns about the firm’s sustained profitability in the near term. Additionally, the recent negative operational cash flow highlights a risk to its liquidity and operational stability.
- Given these factors, it would be prudent for investors to monitor the company’s performance over the subsequent quarters before making any investment commitments. One must note that the issue is solely an offer for sale, meaning the company won't get any funds for its future growth or development.
About the company
Founded in
27 Dec'95
Managing director
Suresh Kumar Sethi
- Protean eGov Technologies Ltd, formerly known as NSDL e-Governance Infrastructure Ltd, specializes in creating digital public infrastructure and developing e-governance solutions that have a significant influence on various segments of India's economy. This includes managing the Tax Information Network, the issuance of PAN cards, record-keeping for the Central Pension system, as well as providing Aadhaar verification and e-KYC services.
- As of June 30, 2023, the firm has successfully rolled out and overseen 19 projects under the purview of seven ministries and autonomous organizations, driving forward the transformation in the public service delivery system.
STRENGTHS
- Steady Financial Growth: From FY21 to FY23, Protean displayed steady growth, with a 11% CAGR in Revenue from Operations, 18% CAGR in EBITDA and 8% CAGR in Net Profit.
- Market Leader: As a pioneer in the field of comprehensive, citizen-focused, large-scale e-governance solutions, Protean stands as a market leader. Its innovations have not only made government services more efficient but also achieved substantial cost savings.
- Investor-friendly Company: Protean is committed to rewarding its shareholders, with a track record of substantial dividend payouts, including 90% in FY21, and 100% in both FY22 and FY23.
RISK FACTORS
- Declining Return Metrics: Protean has experienced a decline in its return ratios, with Return on Equity reducing to 12.49% in FY23 from 18.27% in FY22, and Return on Capital Employed also falling from 22.91% to 16.13% in the same period.
- Profitability Deterioration: There's been a dip in the Net Profit Margin, which fell to 16.13% in FY23, down from its peak of 22.91% in FY22, after an initial rise from 16.93% in FY21.
- Ongoing Legal Issues: The company is currently involved in legal disputes totalling Rs 179.3 crore. Unfavourable outcomes from these disputes could lead to significant liabilities/ penalties and negatively influence their business operations, financial performance, cash flow, and public image.
- Cash Flow Concerns: For the quarter ending on June 30, 2023, the firm reported a negative operational cash flow of Rs 7.9 crore. Sustained negative cash flow or significant liquidity crunches could impair the company's ability to maintain its operations.
Issue details
Issue type
Mainstream
Issue size
₹ 490.33 crore
Fresh Issue
₹ -
OFS
₹ 490.33 crore
Price range
₹ 752 - 792
Lot size
18 shares
Issue Objective
This issue is a pure Offer for Sale (OFS), which means the company will not receive any proceeds from the offer. All the offer proceeds will be received by the selling shareholders, in proportion to the shares sold by them.
Dates
Bidding open
6 Nov'23
Bidding close
8 Nov'23
Allotment date
10 Nov'23
Refund date
10 Nov'23
Listing
13 Nov'23
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.