Mumbai-based IT enabled e-governance service provider Protean eGov Technologies closed its public issue on a strong note, now the participants will keenly await the share allotment status which is likely to be finalised by November 9.
The allotment of shares will take place on a proportionate basis given the healthy response to the IPO by investors. The Rs 490-crore public issue was subscribed 23.86 times on November 8, with qualified institutional buyers buying 46.94 times the allotted quota, high networth individuals 31.62 times and retail investors 8.93 times the reserved portion.
Investors can check the allotment status either on the BSE website or the portal of IPO registrar by following three easy steps.
On BSE website,
a) Select issue type 'equity' and issue name 'Protean eGov Technologies Limited'
b) Enter either 'application number' or 'PAN number'
c) Check box (I am not a robot) and finally click on the 'search' button
On the portal of IPO registrar
a) Select 'Protean eGov Technologies Limited - IPO'
b) Select and accordingly enter either 'PAN number', or 'application number', or 'DP Client ID'
c) Finally, click on the 'search' button
After the finalisation of the basis of allotment, the equity shares will be credited to the demat accounts of successful investors by November 10.
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And lastly, the much awaited listing of its equity shares will take place on November 13, i.e. T+3 timeline, sources told Moneycontrol.
As per the earlier IPO schedule, the trading in equity shares was supposed to start in the T+6 timeline on November 17.
The citizen-centric and population-scale e-governance solutions company launched its public issue of 61.91 lakh shares, comprising only an offer-for-sale by investors, on November 6. The price band for the offer was set at Rs 752-792 per share.
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Its shares were available at a 12 percent premium in the grey market over the upper price band considering the healthy balance sheets & cash flow, and expected growth in PAN cards in coming years with the government's continued investments in digitisation, an analyst said on the condition of anonymity.
The grey market is an unofficial market for trading in IPO shares till the listing. Generally, investors look at the grey market to anticipate the possible listing price of any IPO.
The professionally managed company with 25 years of experience in creating digital infrastructure and governance solutions provides e-governance services such as management of the tax information network, PAN processing, NPS (National Pension Scheme) and Atal Pension Yojana (APY). Also, it is one of the key contributors to the open source community and protocols that are powering the Open Network for Digital Commerce (ONDC).
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What analysts say
The company has enabled 19 nationally critical e-governance stacks while working with 7 ministries across diverse sectors. Protean has strategically expanded across digital and e-governance ecosystems. "As a niche player with a strong growth potential with market leadership, Protean has a strong balance sheet and cash flow," Canara Bank Securities said.
Protean has a unique business model with a 98 percent/100 percent market share in the NPS/APY. "The company has posted constant profitability, and positive cash flow over the last three financial years. The company is poised to grow with the rising number of PAN cards i.e. expected to allot 50-60 million annually till FY27," SBI Securities said.
Financial performance
On the financials front, the net profit in the first quarter of FY24 grew a sharp 51.4 percent on-year to Rs 32.2 crore and revenue from operations during the period increased by 40.6 percent to Rs 220.4 crore. EBITDA (earnings before interest, tax, depreciation and amortisation) grew by 57.2 percent year-on-year to Rs 34.08 crore with a margin expansion of 163 bps at 15.46 percent.
In the year ended March 2023, its net profit fell sharply by 25.6 percent to Rs 107 crore compared to the previous year, largely due to a significant increase in employee costs and lower other income. Profit increased sharply in FY22 to Rs 144 crore, from Rs 92.2 crore in FY21. Revenue from operations grew at a CAGR of 11 percent during FY21-FY23.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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