Shares of Protean eGov Technologies tumbled for the second day on May 20 after the firm lost the bid proposal for the PAN 2.0 project.
At 10:20 am on May 20, Protean eGov shares on NSE were trading 9.5% lower at Rs 1,034 apiece.
On May 19, the stock tumbled 20%t to Rs 1,143.05 -- its lower circuit limit -- on the BSE. At the NSE, shares of the firm cracked 19.99 per cent to hit the lower circuit limit of Rs 1,143.20.
In an exchange filing on Sunday, the company said it has not qualified for the selection round of the PAN 2.0 project of the Income Tax Department (ITD).
The tax department issued a notice for Request for Proposals (RFP) inviting bids for selection of Managed Service Provider (MSP) for design, development, implementation, operations and maintenance of its PAN 2.0 Project. The company participated in the RFP bid proposal for the aforesaid project.
"We were informed by the Income Tax Department (ITD) that we have not been considered favourably for the next round of RFP selection process," the company said in the filing.
It further said that in our understanding this is a project for technology revamp which includes design, development, implementation, operations and maintenance of PAN systems at ITD and at present, it appears to have limited or minimal impact on our ongoing PAN processing and issuance services under the existing mandate with the ITD.
In a conference call on May 19, the management of Protean eGov Technologies said that there is no immediate impact on the business.
They also said that the PAN 2.0 is not related to the processing and distribution part of the business, which the company is currently involved in.
Protean eGov Technologies provides IT services, offering citizen services, e-governance solutions, system integration, business process re-engineering, data centre co-location, and IT consulting services for citizens, corporates and the government.
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