Protean eGov Technologies Debuts at Rs 792 per Share on the BSE

Protean eGov Technologies Limited formerly known as NSDL e-Governance Infrastructure Limited, debuted on the Indian stock market today. 

Upon its debut on the BSE, the stock opened at Rs 729 per share, maintaining parity with the issue price from its initial public offering of Rs 324 per share. However, it’s important to note that the stock has only been listed on the BSE, not the NSE. 

As of the current moment, the stock is being traded at Rs 813 per share on the BSE, having reached intraday highs and lows of Rs 820 and Rs 775, respectively. The present market capitalisation of the company stands at Rs 3,285 crore.  

The book-running lead managers for the IPO are ICICI Securities Limited, Equirus Capital Private Limited, IIFL Securities Limited, and Nomura Financial Advisory and Securities Private Limited. Additionally, Link Intime India Private Limited serves as the registrar for the issue. 

IPO Proceeds: 

The company will not gain any proceeds from the offer, and all the funds generated will be directed to the selling shareholders. The distribution of the offer proceeds among the selling shareholders will be proportionate to the number of offered shares sold by each respective selling shareholder as part of the offer. 

Company profile:  

Protean eGov Technologies Limited formerly known as NSDL e-Governance Infrastructure Limited, it has been actively involved in the development of citizen-centric and population-scale e-governance solutions for over two decades. Established in 1995, the company has been a key player in shaping the national infrastructure for capital market development in India, contributing significantly to the technological advancements in the country. 

As of December 2022, Protean eGov Technologies has successfully executed and overseen 19 projects spanning various ministries, showcasing its expertise and commitment to advancing technological infrastructure in India. 

Subscription details:   

On November 8, 2023, the final day of the IPO window, the IPO witnessed an impressive response, especially when compared to other IPOs recently listed, with a subscription rate of 23.86 times. The public issue received mixed interest, with the retail category being subscribed 8.93 times, the QIB category achieving a subscription rate of 46.94 times, and the NII category reaching a subscription rate of 31.62 times.  

The company attracted Rs 143.53 crore from various anchor investors by allocating 18.12 lakh equity shares at Rs 792 per share. The complete lock-in period for these anchor investors ends on March 21, 2024. 

 The IPO price range was set between Rs 752 and Rs 792, with a face value of Rs 10 per share and a lot size of 18 shares. The total size of the company’s IPO was Rs 490.33 crore, and the final share issue price was fixed at Rs 792 each. 

Financial Performance: 

Conclusion: 

The key dilemma for investors is whether to hold onto their shares. Those who applied for the IPO with the sole intention of capitalising on listing gains may be disappointed as the stock debuted flat in the market today. Consequently, some of these investors may consider closing their positions. 

Conversely, investors with a higher risk tolerance might opt to hold onto their shares for the medium to long term, as this strategy could yield benefits over time. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.