Protean eGov Technologies shares finish listing day at 11.5% premium after muted debut

Protean eGov Technologies shares rose on Monday after making a soft entry to the listed space. The stock of Mumbai-headquartered Protean eGov Technologies—an IT-enabled solutions company—rose to as high as Rs 890.9 apiece on BSE, a premium of 12.5 per cent over the upper end of the price range of its initial public offer (IPO), after debuting at no premium and no discount at Rs 792 apiece. 

The listing was in line with the expectations of Zee Business Managing Editor Anil Singhvi, who saw grim chances of the stock commanding a strong premium over its issue price at the debut. 

The stock settled at Rs 883 apiece on the listing day, a premium of 11.5 per cent. 

EDITOR'S TAKE | Protean eGov Technologies a professionally-run company that is a market leader in the field; high dependence on government projects 

Market wizard Singhvi, who had recommended applying for the issue for a reasonable listing gain and for stable gains over the long term, pointed out the following key points about Protean eGov Tech: 

Positive

• Professionally-run company  
• Market leader in the field  
• Debt-free
• Strong balance sheet 
• Attractive valuation  

Negative

• High dependence on government projects  
• Slightly small-size 

Here are a few key things to know about Protean eGov Technologies: 

• Established in 1995, Protean eGov Tech is among the country's leading IT-enabled solutions providers
• The company operates in areas related to e-governance solutions in crucial and population-scale areas on a national level
• It provides services related to the issuance or verification of PAN cards
• It acts as a central record-keeping agency for schemes NPS and APY
• It also operates in areas such as Aadhaar authentication, e-KYC and e-signatures
• The company collaborates with central and state governments, regulators, as well as financial and non-financial companies
• The company has so far managed 19 projects from various ministries

Here are some of the key things about the Protean eGov Tech IPO: 

The IPO of Protean eGov Tech, which was open for subscription from November 6 to November 8, secured an overall subscription of 23.9 times the equity on offer. While the portion reserved for qualified institutional buyers (QIBs) saw a subscription of 46.9 times the shares reserved, the portion set aside for non-institutional investors was booked 31.6 times, and that for retail investors 8.9 times.

The IPO comprised an offer for sale (OFS) worth Rs 490 crore. 

Under the public offer, Protean eGov Tech shares were available for bidding in a price band of Rs 752-792 apiece in lots of 18 shares, translating to 13,536-14,256 per lot.

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