During Friday’s trading session, the shares of a pioneer and market leader in building Digital Public Infrastructure slumped by nearly 10 percent to Rs. 1,666 on BSE, after NSE Investments plans to sell its entire 20.31 percent stake worth ~Rs. 1,276 crores in the company via offer for sale (OFS).
With a market cap of Rs. 6,928 crores, at 11:44 a.m., the shares of Protean eGov Technologies ltd were trading in the red at Rs. 1,708.95, down by nearly 7.6 percent, as against its previous closing price of Rs. 1,849.75.
What’s the news:
According to the latest regulatory filings with the stock exchanges, Protean’s public shareholder, NSE Investments, plans to sell its entire 20.31 percent stake worth ~Rs. 1,276.4 crores in the company through an offer for sale (OFS). The floor price for the issue has been set at Rs. 1,550 per share.
As per the September 2024 shareholding data available with the BSE, NSE Investments Limited held around 82.34 lakh equity shares, representing a 20.31 percent stake in Protean eGov Technologies.
The OFS will include a base offer of 41.17 lakh equity shares (a 10.16 percent stake) for non-retail investors on 22nd November, followed by a sale for retail investors on 25th November.
Additionally, there will be an option to sell up to 41.17 lakhs more shares, representing another 10.16 percent of the company’s total issued and paid-up equity share capital.
NSE Investments is a wholly-owned subsidiary of NSE, established to make strategic investments in the equity shares and/or other securities of various companies.
Financials:
Protean eGov Technologies reported a marginal decline in revenue from operations, experiencing a year-on-year decrease of nearly 6.8 percent, falling from Rs. 236 crores in Q2 FY24 to Rs. 220 crores in Q2 FY25.
Similarly, during the same period, the company’s net profit decreased from Rs. 33 crores to Rs. 28 crores, representing a decline of around 15.2 percent YoY.
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Key Financial Ratios:
In terms of key financial metrics, Protean eGov Technologies has a Return on Equity (RoE) of 10.9 percent and a return on capital employed (RoCE) of 14.3 percent. Additionally, the company’s debt-to-equity ratio stands at 0.02.
Stock Performance:
The stock has delivered positive returns of nearly 50.5 percent in one year, as well as around 43 percent returns in the last six months. So far in 2024, the shares of Protean eGov Technologies have given positive returns of about 35.6 percent.
About the company:
Incorporated in 1995, Protean eGov Technologies Limited, formerly known as NSDL e-Governance Infrastructure Limited, is an IT solutions company engaged in developing digital public infrastructure and citizen-centric e-governance solutions.
Its current projects include Central Recordkeeping Agency (CRA) under the National Pension System; Tax Information Network (TIN), the activity of processing the applications for allotment of Permanent Account Number (PAN) and acting as a Registrar to Unique Identification Authority of India (UIDAI), Planning Commission, Government of India.
Written by Shivani Singh
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