Protean eGov Technologies IPO is scheduled to begin offering on November 6, 2023. Protean eGov Technologies Limited (formerly NSDL e-Governance Infrastructure Limited) is engaged in the business of developing citizen-centric and population-scale e-government solutions. This article provides details, positive aspects, risk factors, and complete review of Protean eGov Technologies’ IPO.
Protean eGov Technologies IPO Details
| IPO start date | November 6, 2023 |
| IPO deadline | November 8, 2023 |
| IPO listing date | November 17, 23 |
| Type of problem | Book Built Issue IPO |
| face value | 10 rupees per share |
| IPO price range | 752 to 792 rupees per share |
| lot size | 18 stocks |
| Exhibition location | BSE and NSE |
| Total publication size | Rs. 490.33 billion |
| Latest issue | Rs. Tens of billions |
| OFS | Rs. 490.33 billion |
| employee discount | 75 rupees per share |
About Protean eGov Technologies Limited
The company is one of India’s leading IT-enabled solutions companies engaged in conceptualizing, developing and executing population-scale greenfield technology solutions of national importance.
They work with governments and have extensive experience in building digital public infrastructure and developing innovative citizen-centric e-government solutions. These were originally established in 1995 as repositories and created a systemically important national infrastructure for the development of India’s capital markets. The company believes its solutions have helped identify bottlenecks in government services, increased transparency and efficiency, redefined public service delivery, and reduced the cost of service delivery.
The company has become one of the leading companies in India in the e-government space in terms of profitability, operating profit, operating profit and operating margin for FY2023.
Protean eGov Technologies Ltd – Financial Insights
| Fiscal year end/period end (amount in billions) | ||||
| Period ends | March 31, 2021 | March 31, 22 | March 31, 23 | June 30, 2023 |
|---|---|---|---|---|
| assets | 862.39 | 988.14 | 1,104.10 | 1,133.86 |
| revenue | 652.03 | 770.18 | 783.87 | 233.17 |
| Profit after tax | 92.19 | 143.94 | 107.04 | 32.21 |
| net worth | 667.46 | 788.00 | 856.94 | 888.10 |
| reserves and surplus | 627.14 | 747.43 | 816.33 | 847.48 |
Protean eGov Technologies IPO – Positive aspects
- The company is a pioneer and market leader in universal, citizen-centric, and population-scale e-government solutions.
- The company has a large physical infrastructure with pan-India network and scale, resulting in comprehensiveness through a diversified and granular pension-based service offering.
- The company has an experienced senior management team supported by strong corporate governance standards and backed by leading investors.
- The company has a track record of consistently sound financial performance.
Protean eGov Technologies IPO – Risk Factors
- The company’s IPO proceeds consist solely of an offer for sale (OFS). Under OFS, the amount is paid to the selling shareholder, so the company does not benefit directly.
- They rely heavily on government agencies and projects awarded by government agencies, and their relationships with government agencies expose them to the risks inherent in doing business with government agencies, which may adversely affect their business. .
- We may be unable to provide business solutions that meet our clients’ requirements, which may cause them to discontinue doing business with us and our business may be harmed.
- They rely on communications and information technology systems, networks and third party infrastructure to operate their business. Any disruption or failure of our technology systems, as well as the systems, networks and third party infrastructure upon which we rely, could impair our ability to effectively deliver our products and services.
- Contracts with clients can typically be terminated without cause, which can negatively impact revenue and profitability.
- There is a pending lawsuit against the company. An unfavorable decision in such a proceeding would have an impact on the company’s finances.
- Investors should review all risk factors set forth in the Red Herring Prospectus (RHP).
Protean eGov Technologies IPO Price Valuation
The IPO price range is between Rs 752 and Rs 792 per share.
- Considering last year’s FY23 EPS was Rs 26.48, the P/E ratio is 30x.
- Considering the weighted EPS of Rs 28.99 over the past three years, the P/E ratio is 27x.
- Since there are no other companies in the same industry that are listed, it is not possible to determine whether the issue price is overvalued or undervalued. However, considering the P/E ratio of 27x to 30x, this stock is well priced.
IPO Gray Market Premium
GMP (Gray Market Premium) is nothing but the premium at which a stock is traded in the offline market. Protean eGov Tech IPO GMP is currently in the range of Rs 110 to Rs 120. However, this information is based on group discussions on various social networking channels and may not be accurate.Investors can consider this as an indicator, but should not rely on it completely
Protean eGov Technologies IPO – Should you subscribe or avoid?
The company is a pioneer and market leader in universal, citizen-centric, and population-scale e-government solutions. The company has generated strong revenue and profit growth in recent years.
On the other hand, the IPO proceeds will go to the selling shareholders and the company will not receive any funds. Relying on government agencies for projects is a big risk. The Company relies on telecommunications, IT systems, networks and infrastructure to operate its business, and any failures among them could impact the Company’s business.
The IPO price is also fully priced.
Investors who understand all of these advantages and disadvantages should refer to the following: Internal and external risk factors in Protean eGovt Tech IPO RHPyou can consider investing in this IPO.
Suresh KP is the founder of Myinvestmentideas. He is a NISM Certified Investment Advisor and he is a NISM Certified Research Analyst. He has been analyzing financial markets for the past 20 years. He can be reached at suresh@myinvestmentideas.com.
