From eGovernance To Digital Infrastructure: Analyzing Protean eGov Technologies IPO

Protean, (formerly known as NSDL eGovernance Infrastructure Limited) stands as a technology powerhouse, unwavering in its dedication to constructing extensive digital public infrastructure and eGovernance solutions that align seamlessly with the social and financial inclusion objectives of nations. Among their noteworthy accomplishments is the initiation of projects such as PAN issuance, which played a pivotal role in the substantial expansion and deepening of India's tax base. Additionally, they were instrumental in setting up the infrastructure for the Central Recordkeeping Agency (CRA), enabling a comprehensive social security system for all Indians, encompassing the Atal Pension Yojana.

Protean eGov Technologies Limited - The Journey 

Protean eGovernance Technologies Limited commenced its journey under the name "NSDL eGov Establishment of Depository System" back in 1996. Over the years, it has been a driving force behind several pivotal projects for the Indian government. In 2004, it was instrumental in the development of the Tax Information Network, issuance of PAN cards, and the Online Tax Accounting System. Subsequently, in 2005, it introduced the Electronic Accounting System in Excise & Service Tax (EASIEST).

The year 2007 saw the initiation of the Online PAN Verification (OPV) project, followed by the establishment of the Central Record Keeping Agency (CRA) for the National Pension System (NPS) in 2008. In 2011, Protean eGovernance Technologies Limited took on the GST Pilot project Register and ASA for Aadhaar. In 2013, it played a pivotal role in the government's launch of e-KYC services.

The year 2014 witnessed its involvement in the National Judicial Reference System (NJRS) and the EzeeWill project. In 2015, it contributed to projects such as the Atal Pension Yojana (APY) and VidyaLakshmi government schemes. In 2016, it took on projects related to eSign, VidyaSaarathi, and served as the implementing agency for the Central Board of Film Certification (CBFC).

In 2017, the company extended its expertise to become a GST Suvidha Provider (GSP) in collaboration with the Goods & Service Tax Network (GSTN). In 2018, it ventured into projects like VidyaKaushal, Revenue Management System (RMS) for the Department of Telecommunications (DoT), and Data Centre Services, achieving Tier III & IV classification.

The expansion continued in 2020 with the establishment of NSDL eGovernance Australia Pty. Ltd. In 2021, significant developments occurred with the formation of NSDL eGovernance Account Aggregator Limited, and a rebranding to Protean InforSec Services Limited, which subsequently became known as NSDL eGov to Protean. Protean eGov Technologies Limited also has holding of 45% market share in PAN issuance, 58% in TIN, 94% in NPS, and a full 100% in Atal Pension Yojana (APY). This journey underscores Protean's evolution and enduring commitment to eGovernance and digital solutions in India and beyond.

Industry Overview

Protean eGovernance Technologies Limited, a major player in the eGovernance and Technology sector, is dedicated to modernizing public services and government operations. They specialize in citizen-centric and population-scale eGovernance solutions, playing a crucial role in technological infrastructure projects such as Tax Information Network and PAN card issuance. Their impact extends to expanding the tax base, establishing social security systems, and advancing digital commerce. With a focus on innovation, digital infrastructure, and cybersecurity, they are poised to continue shaping the transformation of public administration in India and beyond, making them a significant contributor to the nation's evolving digital landscape.

Protean eGov Technologies Limited IPO Details

Protean EGov Technologies Limited - IPO Goals & Objectives

The Protean eGov Technologies Limited IPO exclusively comprises a Complete Offer for Sale by its current shareholders. Through this process, the company will experience the benefits of having its equity shares traded on the stock exchange. It is expected that this listing will not only enhance the company's visibility and brand reputation but also create a public market for these shares within India.

Protean eGov Technologies Limited IPO Dates

Protean eGov Technologies Limited IPO Price details

Protean eGov Technologies Limited IPO Lot Details

Investors have the option to bid for at least 18 shares and in multiples of that quantity. The table below illustrates the minimum and maximum investment thresholds for both retail investors and high-net-worth individuals (HNIs) in terms of shares and their corresponding monetary values.

Protean eGov Technologies Limited IPO Reservation Details

Protean eGov Technologies Limited - Investment Potential

Qualitative Factors

The qualitative factors that form the basis of offer price computation are

1. Trailblazer and industry frontrunner in all-encompassing, citizen-focused, and nation-wide eGovernance solutions.

2. A secure, adaptable, and cutting-edge technological framework.

3. Extensive physical infrastructure with a nationwide network, facilitating inclusivity.

4. Varied, detailed, and subscription-based service portfolio.

5. A history of robust financial performance.

6. A seasoned senior management team upheld by rigorous corporate governance standards and bolstered by prestigious investors.

Quantitaive Factors 

Risk Factors

Prior to investing in Equity Shares, it's essential for investors to carefully assess the information in the Red Herring Prospectus, especially the highlighted risks and uncertainties, as they indicate significant investment risks.

Risks that Protean eGov Technologies Limited could face are highlighted.

Investors are strongly advised to thoroughly review the Red Herring Prospectus before making an investment.

• The company's substantial reliance on projects awarded by government entities and its association with GoI entities expose it to inherent risks associated with doing business with the government, which could potentially have adverse effects on its business, financial results, and overall financial condition.

• It's important to note that the company has no affiliations or similarities in business with National Securities Depository Limited.

• The account aggregation business of its subsidiary, Protean Account Aggregator Limited (formerly known as NSDL eGovernance Account Aggregator Limited), faces uncertainty in terms of generating revenue from account aggregation operations.

• The company has faced negative cash flows from its operating and financing activities, and there's a possibility of experiencing similar negative cash flows in the future.

• Furthermore, the company has undisclosed contingent liabilities that, if realized, could have a detrimental impact on its financial standing. As of June 30, 2023, these undisclosed contingent liabilities amount to Rs. 249.85 million.

• It's important to clarify that the Offer solely comprises an Offer for Sale. The entire proceeds, after deducting applicable Offer expenses, will be remitted to the Selling Shareholders, with the company not receiving any portion of these proceeds.

Frequently Asked Questions

What does the Protean eGov Technologies IPO entail?

The Protean eGov Technologies IPO is a primary market offering of 6,191,000 equity shares with a face value of Rs.10, totalling up to Rs.490.33 Crores. The price range for the shares in this issue is set at Rs.752 to Rs.792 per share, and the minimum order quantity is 18 shares. The IPO subscription period begins on November 6, 2023, and concludes on November 8, 2023. Link Intime India Private Ltd has been appointed as the registrar for this IPO. The company intends to have its shares listed on the BSE.

What is the Offer Open and Close date for IPO?

The Bid opens on 6th November,2023 (Monday) and closes on 8th November, 2023 (Wednesday by 5.00pm).

What is Protean eGov Technologies Limited IPO Price offer?

Protean eGov Technologies Limited IPO price band is Rs752- Rs.792 per share

What is the Lot size for Protean eGov Technologies IPO?

The Protean eGov Technologies IPO lot size comprises 18 Shares, with a minimum investment requirement of Rs.14,256.

How to apply for the IPO?

The investor can apply for the IPO through an ORCA trading app. IPO applications should follow ASBA process.

 

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Disclaimer: This blog is dedicated exclusively for educational purposes. Please note that the securities and investments mentioned here are provided for informative purposes only and should not be construed as recommendations. Kindly ensure thorough research prior to making any investment decisions. Participation in the securities market carries inherent risks, and it's important to carefully review all associated documents before committing to investments. Please be aware that the attainment of investment objectives is not guaranteed. It's important to note that the past performance of securities and instruments does not reliably predict future performance.