Protean eGov Technologies IPO Review

Protean eGov Technologies IPO is looking to raise Rs 490.33 crore which consists of entirely an offer for sale. Protean eGov Technologies is engaged in creating digital public infrastructure and developing innovative citizen-centric e-governance solutions.

IPO opensNovember 6, 2023
IPO ClosesNov 8, 2023
IPO Size (Rs.)₹490.33 Cr
IPO Size (shares)6,191,000 shares
BreakupEntirely OFS
Face Value:₹ 10/-
IPO Price in Rs :₹752 to ₹792
Minimum Lot18 Shares
Listing AtNSE , BSE
Anchor & QIB Quota50%
NII Quota15%
Retail Quota35%
 Lead ManagerICICI Securities, Equirus Capital, Iifl Securities, Nomura Financial Advisory
RegistrarLink Intime

About Protean eGov Technologies IPO:

  • Protean eGov Technologies Limited was previously known as NSDL e-Governance Infrastructure Limited.
  • The company was inncorporated in December 1995,
  • They are engaged in the business of developing citizen-centric and population-scale e-governance solutions for more than 2 decades.
  • Company has played a vital role in developing national infrastructure for capital market development in India. The company has developed & implemented some of the most crucial technological infrastructure in India.
  • Since December 2022, the company has implemented and managed 19 projects spread across several ministries.
  • The company has played a vital role in developing digital infrastructural solutions has led to the achievement of multiple milestones like:
    • Modernizing direct tax infrastructure through the introduction of projects like PAN issuance
    • Enabling the universal social security system for all Indians, in particular for workers in the unorganized sector, by creating technology infrastructure as a CRA for the Atal Pension Yojana.
    • Improving accessibility to education and skill financing through the development of efficient digital marketplaces. This has led to the discovery of financial resources through platforms such as Vidya Lakshmi and Vidyasaarathi
    • Contributed to and supported open digital building blocks such as Open Network for Digital Commerce (ONDC) for use-cases across sectors like e-commerce, mobility, healthcare, agriculture, and education.
    • Protean eGov Technologies Limited is one of the key and early contributors to the open-source community and protocols that power ONDC.
  • As of June 30, 2023, it had 635 employees on its payroll.
  • Company is a professionally managed company and does not have any identifiable promoter.

Financials: Protean eGov Technologies IPO

Particulars / Rs. In crore2023(03)2022(03)2023(12)2022(12)2021(12)
Revenue from Operations220.4156.75742.21690.91603.13
Revenue Growth (%)40.61%7.42%14.55%
Adj EBITDA34.0921.68117.96123.8384.85
Adj EBITDA15.47%13.83%15.89%17.92%14.07%
Profit Before Tax41.7227.16140.42185.62116
Net Profit for the period32.2121.27107.04143.9492.19
Net Profit (%) as stated14.61%13.57%14.42%20.83%15.28%
Equity Share Capital40.4240.3840.4240.3840.14
Net worth as stated888.1811.77856.94788667.46
EPS – Basic (₹)7.975.27^26.535.7823.02
EPS – Diluted (₹)7.965.26^26.4835.7523
NAV (₹)219.71201.01212195.13166.29
ROE (%)3.63%2.62%12.49%18.27%13.81%
ROCE (%)4.60%3.90%16.13%22.91%16.93%
Post issue Share Capital40.45    
IPO price792.0    
EPS Fy2326.5    
PE Fy2329.9    
EPS Fy24 (annualized)31.9    
PE Fy24  (annualized)24.9    
Market cap in Lacs3,203.6    
Market cap / Sales4.32    

Anchor: Protean eGov Technologies IPO

Protean eGov Technologies IPO: Salient Points

  • It was originally set up as a depository in 1995 but it is not into this area now.
  • Protean eGov Technologies now it is one of the key IT-enabled solutions companies in India.
  • They are one of the key IT-enabled solutions companies in India engaged in conceptualizing, developing and executing nationally critical and population scale greenfield technology solutions.
  • They collaborate with the government and have extensive experience in creating digital public infrastructure and developing innovative citizen-centric e-governance solutions.
  • They among the leading Indian companies in the e-governance sector in terms of profitability, operating income, operating profit and operating profit margin in Fiscal 2023.
  • Protean eGov Technologies has been instrumental in establishing public digital infrastructure and creating e-governance interventions impacting multiple sectors of the Indian economy.
  • Protean eGov Technologies Shareholders include financial institutions such as NSE Investments Ltd, 360 ONE Special Opportunities Fund, SUUTI, Citicorp Finance India Ltd and certain public and private sector banks such as State Bank of India, Punjab National Bank, Union Bank of India, Bank of Baroda and Canara Bank, HDFC Bank Ltd, Axis Bank Ltd, Deutsche Bank A.G, The Hong Kong and Shanghai Banking Corporation Ltd, Standard Chartered Bank etc.
  • Peers: None
  • Company has developed 19 digital public infrastructure projects for 7 GOI ministries.
  • The core business operations of Protean eGov Technologies yields quite high RoE in range of 40% plus but overall ROE ois less as it hoklds lot of cash parked in fixed instruments.
  • Protean eGov Technologies Limited is the Central Recordkeeping Agency (CRA) for the National Pension System (NPS) in India. It has a market share of over 98% in the NPS business.
  • It has a dominants share in TIN as well as Pan card issuance.
  • It earns a major portion (75-80%) through transaction fees and balance is earned maintenance (in from of annuity).
  • Protean eGov Technologies IPO is coming at a PE ratio of 29.9x (FY23) and 25x (FY24 annualized on Q1FY24 results).
  • I intend to apply in Protean eGov Technologies IPO. It looks to be good long term play as it operates in niche sectors.
  • GMP as reported on social media is around Rs. 90.

Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

This Post Has One Comment

  1. Anonymous

    Thank you for giving a great overview of the company!!

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