IPO Alert: Protean eGov Technologies Limited is all set for a public listing

Information technology services is one of the leading business segments in India and is projected to grow at a compound annual rate of 6-8% by 2026. The industry has witnessed a sharp increase in volumes aided by widespread digitalization, led by the banking, financial services and insurance sectors as well as government agencies.

Protean eGov Technologies, formerly known as NSDL E-Governance Infrastructure, has filed preliminary papers with capital markets regulator SEBI to raise funds through an initial public offering. The public issue involves an offer for sale of about 1.2 crore equity shares, according to the draft red herring prospectus. The company will not receive any proceeds from the offering as the amount will go to selling shareholders.

Company Profile

Protean eGov Technologies is a leading provider of IT-enabled solutions in the country, and is engaged in conceptualizing, developing and executing nationally critical and population-scale greenfield technology solutions. The company, which has extensive experience in creating digital public infrastructure and developing innovative citizen-centric e-governance solutions, has collaborated with the government.

The Mumbai-based company, which started operations as a depository in 1995, created a systemically important national infrastructure for capital market development in India.

The e-governance industry in India is highly competitive. Protean Tech’s competitors include CDSL Ventures Limited, CMS Computer Limited, Computer Age Management Services Limited, CSC E-Governance Services Limited, Karvv Data Management Services Limited, Kfin Technologies Private Limited, Sify Technologies Limited and UTI Infrastructure Technology and Services Limited.

Key Numbers

In the fiscal period ended June 31, 2021, Protean Tech generated a total income of ₹143.1 crores, versus ₹107.3 crores in the previous year. The company had a net profit of ₹10.1 crores, against ₹11.6 crores in the same quarter of the previous year.

The company’s business and revenues are substantially dependent on e-governance and other projects awarded by central and state government establishments, including local authorities and public sector undertakings. Changes in government policies and budgetary allocation could adversely affect the company’s existing and proposed projects as well as its ability to participate in competitive bidding/negotiations for future projects.