Unlisted shares of Protean eGov Technologies are currently trading Rs 95 higher in the grey market, which means a 11.99 per cent GMP
Protean eGov Technologies IPO: The initial public offering (IPO) of Protean eGov Technologies, which opened on Monday and closes today on Wednesday, has received a decent 4.03 times subscription so far on the final day of bidding. Till 10:36 am, the Rs 490-crore IPO received 1,76,39,550 shares against 43,78,700 shares on offer
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The category for non-institutional investors was subscribed 8.30 times, while the quota for retail individual investors (RIIs) received 4.68 times subscription. The portion for qualified institutional buyers (QIBs) was subscribed 8 per cent.
The IPO of Protean eGov Technologies was subscribed 3.21 times on Day 2 of subscription on Tuesday. It received a full subscription on the first day of the share sale on Monday.
The IPO is likely to be listed on the BSE on November 17, while the share allotment might take place on November 13.
Protean eGov Technologies IPO GMP Today
According to market observers, unlisted shares of Protean eGov Technologies are currently trading Rs 95 higher in the grey market, which is lower as compared with Monday’s Rs 111 GMP. The latest Rs 95 grey market premium or GMP is about 11.99 per cent higher than its upper issue price of Rs 792 per share. This means the grey market is expecting a 11.99 per cent listing gain from the public issue.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Protean eGov Technologies IPO: Should You Buy?
Though the latest GMP indicates a decent gain on the listing day, here are some of the brokerage firms’ recommendations.
Assigning the ‘subscribe’ rating to Protean eGov Technologies IPO, Anand Rathi Research in its note said, “The company is pioneer and market leader in universal, citizen-centric and population scale e-governance solutions. At the upper price band, the company is valued at a P/E ratio of 29.9 of its FY23 earnings with a market cap of Rs 3,203.4 crore post issue of equity shares. We believe that the issue is fairly priced and recommend ‘subscribe with long term’ rating.”
Canara Bank Securities in its note said, “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 to subscribe for listing gains and long term.”
Swastika Investmart also given the ‘subscribe’ recommendation to the IPO, saying, “However, it (Protean) faces some risks too, such as its dependence on government contracts, competition from other enterprise solution companies, and regulatory risks. The IPO is coming at a P/E valuation of 29.9 times, and though the company does not have any listed peers, the issue is looking reasonably priced. Considering all these factors, investors may apply.”
About Protean eGov Technologies IPO
The IPO is purely an offer of sale (OFS) by existing shareholders. The OFS size has been reduced to 61.91 lakh equity shares from 1.28 crore equity shares planned earlier.
Protean eGov Technologies (formerly known as NSDL E-Governance Infrastructure) on Friday said it has mobilized a little over Rs 143 crore from anchor investors.
Since the IPO is completely an OFS, the entire proceeds will go to the selling shareholders and the company will not receive any funds from the issue. The Rs 490-crore IPO, with a price band of Rs 752-792 per share, will conclude on November 8.
Protean eGov Technologies is one of the key IT-enabled solution companies in India engaged in conceptualizing, developing, and executing nationally critical and population-scale greenfield technology solutions. The company collaborated with the government and has extensive experience in creating digital public infrastructure and developing innovative citizen-centric e-governance solutions.
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Originally set up as a depository in 1995, it created a systemically important national infrastructure for capital market development in India. ICICI Securities, Equirus Capital, IIFL Securities and Nomura Financial Advisory and Securities (India) are the managers of the offer.
Shares of the company will be listed on the BSE.
