On the last day of bidding, Protean eGov Technologies’ initial public offering (IPO), which launched on Monday and ends today on Wednesday, has gotten a respectable 4.03 times subscription thus far. The Rs 490,000 IPO got 1,76,39,550 shares up to 10:36 am, out of the 43,78,700 shares that were offered.
Retail individual investors (RIIs) earned a subscription limit of 4.68 times, but the category for non-institutional investors received an 8.30 times subscription. Eight percent of the share designated for qualified institutional buyers (QIBs) was subscribed.
On Tuesday, the second day of subscriptions, 3.21 people registered to Protean eGov Technologies’ initial public offering. On Monday, the first day of the share sale, it had a full subscription.
November 17 is when the IPO is expected to be listed on the BSE, and November 13 is when the shares may be allocated.
IPO GMP Today for Protean eGov Technologies
Market watchers report that unlisted shares of Protean eGov Technologies are now selling on the grey market for Rs 95 more, which is less than the Rs 111 GMP that was set on Monday. The most recent grey market premium, or GMP, of Rs 95 is about 11.99% more than the share’s top issue price of Rs 792. This indicates that the public issuance is expected to result in a listing gain for the gray market of 11.99%.
The willingness of investors to pay above the issue price is shown by the “grey market premium.”
The IPO of Protean eGov Technologies: Should You Invest?
Despite the fact that the most recent GMP shows a respectable gain on the listing day, the brokerage companies propose the following.
Anand Rathi Research gave Protean eGov Technologies’ initial public offering (IPO) a “subscribe” rating, noting in its note that the business is a market leader and innovator in universal, citizen-centric, and population-scale e-governance solutions. With a market capitalization of Rs 3,203.4 crore after the issuance of equity shares, the business is valued at a P/E ratio of 29.9 of its FY23 profits at the top price band. We think the issue is well priced and advise giving it a “subscribe with long term” grade.
“Protean has strategically expanded across the digital and e-governance ecosystem,” Canara Bank Securities said in a note. Protean is a market leader and specialized player with high growth potential and a solid finance sheet and cash flow. We advise subscribing for long-term and listing profits.
“However, it (Protean) faces some risks too, such as its dependence on government contracts, competition from other enterprise solution companies, and regulatory risks,” said Swastika Investmart, which also recommended that the IPO be subscribed to. Despite the lack of listed competitors for the firm, the IPO is expected to be valued at a P/E ratio of 29.9 times, making the offering seem well priced. Investors may apply taking all of these aspects into account.
About the IPO of Protean eGov Technologies
An offer of sale (OFS) made by current shareholders is all that the IPO entails. The initial proposal for 1.28 crore equity shares of the OFS has been scaled down to 61.91 lakh equity shares.
A little over Rs 143 crore has been raised from anchor investors, according to a statement released on Friday by Protean eGov Technologies, previously known as NSDL E-Governance Infrastructure.
Since the IPO is entirely an OFS, the firm will not receive any money from the sale; instead, all revenues will go to the selling shareholders. The Rs 490-crore initial public offering (IPO) will end on November 8 with a price range of Rs 752–792 per share.
One of the leading providers of IT-enabled solutions in India, Protean eGov Technologies is responsible for designing, creating, and implementing greenfield technological solutions that are essential to the country’s people. The business worked with the government and has a wealth of expertise building cutting-edge, citizen-focused e-governance solutions and digital public infrastructure.
It established a systemically essential national infrastructure for the growth of India’s capital market when it was first established in 1995 as a depository. The offer’s managers are ICICI Securities, Equirus Capital, IIFL Securities, and Nomura Financial Advisory and Securities (India).
The company’s shares are scheduled to be listed on the BSE.