Protean eGov Tech IPO booked over twice on Day 2 so far; NIIs & retailer lead bidders
The initial public offering (IPO) of Protean eGov Technologies continued to see a decent response from the investors during the second day of the bidding process. The issue, which had kicked-off for bidding on Friday, November 3, had sailed through on the first day itself.
Protean eGov Technologies’ is selling its shares in the price band of Rs 752-792 apiece with a lot size of 18 equity shares and its multiples thereafter. The e-Governance solutions provider is looking to raise Rs 490.33 crore via IPO route, which is entirely an offer-for-sale (OFS) of up to 6.19 crore equity shares by selling shareholders.
According to the data, the investors made bids for 88,15,914 equity shares, or 2.01 times, compared to the 43,78,700 equity shares offered for the subscription by 1.00 pm on Tuesday, November 7. The three-day bidding for the issue will conclude on Wednesday, November 8.
The portion reserved for retail investors was subscribed 2.70 times, while the allocation for non-institutional investors (NIIs) saw a subscription of 3.33 times. The allocation for employees was booked 56 per cent. However, the quota set aside for qualified institutional bidders (QIBs) was booked merely one per cent as of the same time.
Protean eGov Tech, formerly known as NSDL e-Governance Infrastructure, has been engaged in the business of developing citizen-centric and population scale e-governance solutions. It has played a vital role in development of capital market infrastructure in India and implemented some of the most crucial technological infrastructure in the country.
Brokerage firms tracking the IPO are mostly positive on the IPO and have a subscribe rating citing its strong hold in the digital infrastructure business and governance solutions, experience and expertise management, entry barriers limiting the competition and niche business model.
Protean has strategically expanded across the digital and e-governance ecosystem. As a niche player with a strong growth potential with market leadership, Protean has a strong balance sheet and cash flow. We recommend subscribing for listing gains and long term, said Canara Bank Securities.
Protean eGov Technologies raised Rs 143.5 crore from anchor investors by allocating them 8,12,300 shares at a price of Rs 792 apiece. IIFL Securities Equirus Capital, ICICI Securities, and Nomura Financial Advisory and Securities (India) are the lead managers to the issue, while Link Intime India is the registrar for the IPO. Shares of the company will be listed on BSE only.
The company is valued at FY23PE multiple of 29.9 times and EV/EBITDA of 26 times, at the upper price band on post-issue capital. The company has a unique business model with 98 per cent and 100 per cent market share in the NPS and APY, respectively, said SBICap Securities.
“The company has posted constant profitability, positive cash flow over the last three financial years. The company is poised to grow with the rising number of PAN cards that is expected to allot 50-60 million annually till FY27. We recommend investors to subscribe to the issue for a long-term investment horizon,” it added.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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