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13 January 2024

Protean eGov Technologies IPO: Pioneering e-Governance Solutions

Introduction:

Protean eGov Technologies IPO, a book-built issue worth Rs 490.33 crores, has made significant waves in the financial market. This entirely offer-for-sale IPO comprising 0.62 crore shares had a bidding window from November 6, 2023, to November 8, 2023. The allotment was finalized on November 13, 2023, and the shares were listed on BSE on the same day.

Financial Snapshot:

With a price band set at ₹752 to ₹792 per share, the minimum lot size for retail investors was 18 shares, requiring an investment of ₹14,256. As of the IPO date, the shareholding pre and post-issue remains constant at 40,446,732 shares.

Key IPO Metrics:

- IPO Duration: November 6, 2023, to November 8, 2023
- Listing Date: November 13, 2023
- Face Value: ₹10 per share
- Price Band: ₹752 to ₹792 per share
- Lot Size: 18 Shares
- Total Issue Size: 6,191,000 shares, aggregating up to ₹490.33 Cr
- Offer for Sale: 6,191,000 shares of ₹10, aggregating up to ₹490.33 Cr
- Employee Discount: Rs 75 per share
- Issue Type: Book Built Issue IPO
- Listing At: BSE

Equity Dynamics:

The pre-issue and post-issue shareholding for Protean eGov Technologies stands at 40,446,732 shares.

Reservation Dynamics:

The IPO reserves 6,191,000 shares, with allocations of 19.52% to QIB, 14.64% to NII, 34.15% to RII, 2.42% for employees, and 29.27% to Anchor investors. Retail investors are allocated a minimum of 18 shares, sNII and bNII get a minimum of 270 shares each. In case of oversubscription, 117,463 RIIs will be allotted.

IPO Timeline Highlights:

- IPO Open Date: Monday, November 6, 2023
- IPO Close Date: Wednesday, November 8, 2023
- Basis of Allotment: Monday, November 13, 2023
- Initiation of Refunds: Wednesday, November 15, 2023
- Credit of Shares to Demat: Thursday, November 16, 2023
- Listing Date: Monday, November 13, 2023
- Cut-off time for UPI mandate confirmation: 5 PM on November 8, 2023

Lot Size Landscape:

Investors could bid for a minimum of 18 shares and in multiples thereof. The table below outlines the investment parameters for retail investors and HNIs:

Application	Lots	Shares	Amount
Retail (Min)	1	18	₹14,256
Retail (Max)	14	252	₹199,584
S-HNI (Min)	15	270	₹213,840
S-HNI (Max)	70	1,260	₹997,920
B-HNI (Min)	71	1,278	₹1,012,176

About Protean eGov Technologies:

Incorporated in December 1995, Protean eGov Technologies Limited is a leading provider of IT services, offering a spectrum of citizen services, e-governance solutions, system integration, and IT consulting services. The company has played a pivotal role in numerous crucial projects like Tax Information Network (TIN), PAN services, Goods and Services Tax (GST), Aadhaar Authentication & e-KYC Services, and more.
Protean eGov Technologies manages a pan-India network of over 167,000 centers, including PAN and TIN facilitation centers and points of presence. The company is recognized for its significant contributions to digital infrastructural solutions, supporting open digital building blocks like Open Network for Digital Commerce (ONDC).

Financial Performance Snapshot:

As of June 30, 2023:

- Assets: ₹1,133.86 Crores
- Revenue: ₹233.17 Crores
- Profit After Tax: ₹32.21 Crores
- Net Worth: ₹888.10 Crores
- Reserves and Surplus: ₹847.48 Crores

Key Financial Indicators:

- ROE: 12.49%
- ROCE: 16.13%
- RoNW: 12.49%
- EPS (Rs): 26.48
- P/E (x): 24.86

Objects of the Issue:

The proceeds from the IPO will go entirely to the selling shareholders, and the company will not receive any funds from the offer.

Expert Analysis:

The issue seems fully priced based on FY24 annualized earnings. With the rising importance of eGovernance globally, this company is poised for bright prospects ahead, making it an attractive investment for medium to long-term rewards.

IPO Subscription Status:

As of November 8, 2023, the Protean eGov Technologies IPO was oversubscribed by 23.86 times. The retail category was subscribed 8.93 times, QIB category at 46.94 times, and NII category at 31.62 times (33.14 times for bids above ₹10L and 28.58 times for bids below ₹10L).

Note: All financial figures are in INR (Indian Rupees), and market-related data is as of November 8, 2023.

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