Protean eGov Technologies IPO: All You Need To Know
The company plans to raise Rs 490 crore through an offer for sale only.
Protean eGov Technologies Ltd.'s initial public offering will open on Nov. 6, and close on Nov. 8.
The IT-enabled solutions provider is offering 61.9 lakh shares via an offer for sale only.
The selling shareholders comprise 360 One Special Opportunities Fund, HDFC Bank Ltd., Axis Bank Ltd., Deutsche Bank AG, Union Bank of India, NSE Investments and Unit Trust of India.
IPO Details
Issue opens: Nov. 6.
Issue closes: Nov. 8.
Fresh issue size: Not applicable.
Offer for sale size: Rs 72.3 crore.
Total issue size: Rs 490 crore.
Price band: Rs 752-792 per share.
Lot size: 18 shares.
Face value: Rs 10 per share.
Listing: BSE.
The company has not undertaken any pre-IPO placement.
The shareholding pattern does not change for the company after the offer.
Business
Protean eGov Technologies was originally set up as a depository in 1995 and created a systemically important national infrastructure for capital markets. The company operates in the e-governance sector and has so far managed 19 projects across seven ministries, to establish public digital infrastructure.
Some of their key interventions include modernising digital tax infrastructure with PAN issuance, and projects like Tax Information Networking and Online Tax Accounting Systems. They also created tech infrastructure as a Central Recordkeeping Agency for the Atal Pension Yojana.
The company has also supported open digital building blocks, such as Open Network for Digital Commerce, for use cases across e-commerce, mobility, healthcare, agriculture, and education.
Use Of Proceeds
The company will not receive any proceeds from the offer for sale.
All the funds raised will be received by the selling shareholders, in proportion to the shares sold by them.
Risk Factors
Protean is substantially dependent on projects awarded by government agencies. In fiscal 2023, revenue from contracts sourced by government bodies were at Rs 538 crore, or 72.5% of their operations.
Their operations are solely dependent on providing IT services, which could be at risk if they don't provide solutions that meet client expectations.
Their reliance on technology systems and third-party networks could impair their ability to deliver on products and services.
Their client contracts can typically be terminated without cause, which could impact their revenue and profitability.
Amount of trade receivables in the quarter ended June 2023 were representing 99.62% of their revenue from operations. Any delay in collection of their dues can have an adverse impact on cash flows.
The company may not meet the selection criteria for high value contracts, and has not been awarded any orders for the first quarter of the current fiscal.
