Protean eGov Technologies shares drop amid NSE stake sale via OFS
Shares of Protean eGov Technologies, the Mumbai-based technology company dealing in e-governance solutions, dropped about 10% in morning trade on Friday, November 22, on the BSE and NSE. The fall came after the National Stock Exchange announced selling off an important 20.31% stake in the company via an OFS.
Stock Performance
Opening Price (NSE): ₹ 1,690 (from the previous close of ₹1,849.75).
Low Intraday: ₹ 1,666 per share.
Current Trading Price (1:28 PM): ₹ 1,687. The stock is down 8.8% .
Sharp fall .
This due to investor reactions against the base price of the OFS being set at ₹1,550, much lower than the previous closing price.
About OFS
The offer-for-sale is being conducted by NSE Investments, a wholly-owned subsidiary of NSE. Key details about the same are as follows:
Stake Sale:
Base Offering: 10.16% of equity (41,17,303 shares).
Green Shoe Option: Another 10.16% stake, if it is oversubscribed.
Base Offer Price: ₹1,550 per share.
Calendar
Non-institutional Investors: OFS would open on November 22.
Retail Investors: OFS would open on November 25.
There could be strategic reasons why NSE has decided to divest a chunk of its holding by allowing larger market participation.
About Protean eGov Technologies
Protean eGov Technologies stands as one of the top IT solution providers in India, offering e-governance solutions for important welfare schemes, like:
National Pension Scheme (NPS)
Atal Pension Yojana (APY)
National Pension Scheme (NPS)
Atal Pension Yojana (APY)
Financial Performance
For Q2 FY25, Protean eGov Technologies posted:
Revenue: ₹219 crores. YoY growth not mentioned.
Net Profit: ₹28 crores, at a 15% YoY fall however, the sequential increase was a handsome 33%.
The year-on-year profit drop points to difficulties, but the sequential gain assures that the company is improving operations.
Market Sentiment
Since listing in November last year, the stock has returned pretty good returns to investors, though Friday’s sharp fall.
Since listing in November last year, the stock has returned pretty good returns to investors, though Friday’s sharp fall.
The OFS pricing-related worries have constituted the investor’s concerns as regards the slump in Protean eGov Technologies’ share price. But long-term growth story is where its impressive track record in e-governance and critical role in India’s IT infrastructure come into play. As the OFS unfolds, market participants will watch investor demand and post-sale performance closely.
