protean egov tech ipo: Protean eGov Technologies IPO opens for subscription. Should you apply?

The initial public offer (IPO) of Protean eGov Technologies kicked off for subscription. The issue will be available for the public to bid till November 8.

Analysts are positive on the IPO, given the company’s unique and niche business area, consistent profitability and positive cash flows.

“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.

The issue is completely an offer for sale of 61.9 lakh shares. Under the OFS, 360 One Special Opportunities Fund, NSE Investments, HDFC Bank, Axis Bank and Deutsche Bank among others will offload their partial stakes.

The company has fixed a price band of Rs 752-792 per share, and at the upper end, it plans to raise Rs 490 crore.

About 50% of the issue size has been reserved for qualified institutional investors, 35% for retail investors, and the remaining 15% for non-institutional investors.

Also, the offer includes a reservation of 1.5 lakh equity shares for the company’s employees at a discount of Rs 75 per share to the final offer price.Investors can bid for a minimum of 18 equity shares and in multiples thereafter.

“Protean has a secure, scalable and advanced technology platform having horizontal and vertical scalability, with limited capital expenditure and working capital required to scale growth in its key areas. Therefore, we recommend a Subscribe to the issue,” said Reliance Securities.

The selling shareholders will be entitled to receive the entire proceeds of the offer as there is no fresh issue component.

Protean eGOV Technologies is a leading IT-enabled solutions company engaged in conceptualizing, developing and executing nationally critical and population-scale greenfield technology solutions. It has over 25 years of experience in creating digital infrastructure and governance solutions.

The company has enabled 19 nationally critical e-governance stacks while working with 7 ministries across diverse sectors.

For the three months ended June 2023, the company’s revenue from operations rose 40% to Rs 220 crore, while profit jumped 52% to Rs 32.2 crore.

ICICI Securities, Equirus Capital, IIFL Securities and Nomura Financial Advisory and Securities (India) are the book-running lead managers to the issue.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

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