Shares of Protean eGov Technologies fell sharply by up to 9% during early trading hours on November 22, following the National Stock Exchange’s (NSE) announcement to divest its stake in the company through an offer for sale (OFS).
Details of the Stake Sale
The OFS will see NSE Investments, a wholly-owned subsidiary of NSE, sell up to 20.32% equity stake in Protean. This includes a base issue of 10.16% equity, with an additional green shoe option for another 10.16%. The floor price for the OFS has been set at Rs 1,550 per share.
The OFS opens on November 22 for non-retail investors and November 25 for retail investors.
At 9:25 am, shares of Protean were trading at Rs 1,712.9 on the NSE, down 7.4% from the previous session’s closing price.
Financial Performance
In the September quarter (Q2FY25), Protean reported a 15% decline in net profit, amounting to Rs 28 crore, compared to Rs 33 crore in the same period last year. On a sequential basis, however, net profit rose by 33%. The company’s sales also saw a 7% drop to Rs 220 crore, compared to Rs 236 crore in Q2FY24.
Brokerage Insights
Despite the current selloff, Sharekhan by BNP Paribas has maintained a positive outlook on Protean eGov Technologies. It has assigned a target price of Rs 2,510 per share. The brokerage pointed out the company’s dominance in legacy service lines and its growth potential on the back of factors such as workforce formalization, financial inclusion, and under-penetration in pension services.
“Protean is well-positioned for robust growth, leveraging its digital transformation expertise to expand into new verticals and develop global infrastructure in emerging markets,” the brokerage was quoted as saying by MoneyControl.
Stock Performance
Over the past 12 months, Protean eGov Technologies has delivered a 50% return, outperforming the Nifty 50, which gained around 18% during the same period. Its year-to-date returns stand at nearly 36%.
