Protean eGov Technologies stock cracks 9% as NSE to sell 20% stake via OFS route

Shares of Protean eGov Technologies have recorded a 12-month run of 50 percent.

Shares of IT-enabled solution company Protean eGov Technologies took a tumble in the morning session on November 22, falling as much as nine percent, as the National Stock Exchange (NSE) announced it would offload a stake in the company.

NSE Investments will sell up to 20.32 percent stake in the company through an offer for sale (OFS) at floor price of Rs 1,550 per share.  The OFS includes base issue of 10.16 percent equity and has a green shoe option of 10.16 percent equity.

NSE Investments Limited is a wholly-owned subsidiary of NSE, which was incorporated to, make/hold strategic investments in the equity shares and/or other securities of other companies.

The OFS will open on November 22 for non-retail investors and on November 25 for retail investors.

At 9.25 am, shares of Protean eGov Technologies were quoting Rs 1,712.9 on the NSE, down 7.4 percent compared to the previous session's closing price.

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In the September quarter, the company reported 15 percent decline in net profit at Rs 28 crore as compared to Rs 33 crore in the year-ago period. However, on sequential basis, the net profit rose 33 percent. The company's sales fell 7 percent to Rs 220 crore in Q2FY25 as against Rs 236 crore in Q2FY24.

Sharekhan by BNP Paribas has a positive view on the IT player, giving it a target price of Rs 2,510 per share. Protean’s dominance in key legacy service lines is bolstered by favorable trends such as workforce formalisation, financial inclusion and significant under-penetration in pension services, said the brokerage.

"Protean is well-positioned for robust growth owing to its strategy of diversifying into new verticals and leveraging its digital transformation expertise to develop global infrastructure in developing countries," it added.

Shares of Protean eGov Technologies have recorded a 12-month run of 50 percent, outperforming the frontline Nifty 50 index which has gained around 18 percent during the same time period.

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