Protean eGov Technologies' IPO is a book built issue amounting to Rs 490.33 crores, comprising entirely of an offer for sale of 0.62 crore shares. The bidding for the IPO commenced on November 6, 2023, and concluded on November 8, 2023. The allotment of shares was finalized on Monday, November 13, 2023, coinciding with the listing of shares on the BSE.

The price band for Protean eGov Technologies IPO was set at ₹752 to ₹792 per share. The minimum lot size for an application stood at 18 shares, requiring a minimum investment of ₹14,256 for retail investors. For sNII, the minimum lot size investment was 15 lots (270 shares), amounting to ₹213,840, while for bNII, it was 71 lots (1,278 shares), requiring an investment of ₹1,012,176.

The IPO also included a reservation of up to 150,000 shares for employees, offered at a discount of Rs 75 to the issue price. ICICI Securities Limited, Equirus Capital Private Limited, Iifl Securities Ltd, and Nomura Financial Advisory And Securities (India) Pvt Ltd served as the book running lead managers for the Protean eGov Technologies IPO, with Link Intime India Private Ltd acting as the registrar for the issue.

Objective of IPO.

The offer is completely “offer for sale”.

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About Protean eGov Technologies Limited

PROTEAN EGOV TECHNOLOGIES is a key IT-enabled solutions companies in India engaged in conceptualizing, developing, and executing nationally critical and population scale greenfield technology solutions. It collaborates with the government and creates digital public infrastructure and develops innovative citizen-centric e-governance solutions.

The company was setup as a depository in 1995 and created a systemically important national infrastructure for capital market development in India. The company helped remove the bottleneck in the government services, increased transparency and efficiency and improved delivery of public services by reducing cost.

Overview of data center and cloud services

Approximately 64% of Indian MSMEs using cloud services for day-to-day operations

Public cloud: multi-tenant platform, on-demand and elastic infrastructure, utility pricing model

Private cloud: Dedicated hardware, high performance hardware, extra security and compliance, and specific policies

Hybrid cloud: Integration of public and private, more architectural flexibility, more technical control

Software as a Service (SaaS): It provides access to software over the internet. These applications can be accessed through a web browser, desktop client or an application programming interface (API).

Infrastructure as a Service (IaaS): Acts a platform to rent IT infrastructure such as servers, virtual machines, storage and networks from a cloud service provider on a pay-as-you-go model.

Platform as a Service (PaaS): It offers access to cloud-based tools, such as APIs, gateway software and web portals.

MSMEs prefer public cloud services, with SaaS having a dominant approximately 50% share in Fiscal 2020. SaaS adoption is expected to log a CAGR of 27%. IaaS, however, is expected to grow at a faster approximately 33% CAGR by Fiscal 2025 driven by exponential data generation, demand for big data analytics, use of storage as a service and faster deployment and scalability.

PAN:

PAN card allotment is expected to be driven by expansion in taxpayer base, growth in financial inclusion, thereby mandating the usage of PAN cards, working age population, GDP growth, and increasing contribution of the formal economy. Considering the past growth trend in the number of allotments and the demographic and economic scenario of India, total PAN card allotment is expected reach 880-900 million by Fiscal 2027.

CRA:

Protean eGov Technologies Ltd., KFin Technologies Private Ltd., and Computer Age Management Services Ltd. abbreviated as Protean-CRA, KCRA, CAMS respectively an, act as central record keeping agencies (CRA) for NPS in India. As of June 2023, Protean eGov Technologies Ltd. CRA (Protean-CRA) had a market share of 98% in terms of NPS subscribers and 99% in terms of NPS AUM. Protean-CRA dominates the NPS CRA market for both government and private sectors

Overview of e-commerce retail industry in India

The ONDC is a digital project of the government to redefine the e-commerce landscape in the wake of a large number of complaints of malpractices by e-commerce companies. To standardise the process of on-boarding retailers on e-marketplaces, 127 and supply and delivery of products through online channels, the Department for Promotion of Industry and Internal Trade (“DPIIT”) plans to develop ONDC to set protocols.

Risk Analysis.

1. The company doesn’t have a diverse base of clients. It is substantially dependent on projects awarded by government entities and agencies facing competition from global and Indian enterprise solution companies.
2. It relies on telecommunications and information technology systems, networks and third-party infrastructure to operate. Lack of new development or enhancement of existing ones will harm the growth of the organization.
3. The company has a sales cycle which is lengthy and depends upon many factors outside control. Wage pressures and increases in operating costs in India may affect competitive advantage and profit margins.
4. The company recently changed its name from NSDL e-Governance Infrastructure Limited to Protean eGov Technologies Limited. It is required to obtain, renew, or maintain statutory and regulatory permits, licenses, and approvals to operate.
5. Some aspects of the platform include open-source software.
6. The data centers could be harmed by prolonged power outages or shortages, increased costs of energy or general lack of availability of electrical resources. The confidential information or data of our clients and users of our services may be misappropriated.
7. The company may be liable to its clients or to regulators for damages caused by inadvertent disclosure of confidential information and sensitive data.
8. If the company is unable to protect its intellectual property and proprietary information, the business, financial condition, cash flows and results of operations may be adversely affected.