NSE Investments will sell up to 20.32% stake in the company through an offer for sale (OFS) at floor price of Rs 1,550 per share.
Shares of IT-enabled solution company Protean eGov Technologies fell sharply during the morning session on November 22 after the National Stock Exchange announced that it would offload a stake in the company. At one point, its shares fell as much as nine percent.
NSE Investments would sell up to 20.32 per cent stake in the company through an offer for sale (OFS) at the floor price of Rs 1,550 per share. The OFS comprises a base issue of 10.16 per cent equity and has a green shoe option of 10.16 per cent equity.
NSE Investments Limited is a wholly owned subsidiary of NSE, which was incorporated for the purpose of making/holding strategic investments in the equity shares and/or other securities of other companies.
OFS opening date for non-retail investors on November 22 and for retail investors on November 25.
At 9:25 am, shares of Protean eGov Technologies were quoting at Rs1,712.9 on the NSE. The scrip was down by 7.4 percent from the previous session’s closing price.
This is the second-consecutive quarter of decline in net profit for the company, which slipped by 15 percent in the September quarter to Rs 28 crore from Rs 33 crore in the year-ago period.
On a sequential basis, the net profit rose 33 percent. The sales of the company declined 7 percent to Rs 220 crore in Q2FY25 from Rs 236 crore in Q2FY24.
Sharekhan by BNP Paribas remains positive on the IT player, which it has put at a target price of Rs 2,510 a share. The dominance of Protean in the key legacy service lines are supported by benign trends such as workforce formalisation, financial inclusion and significant under-penetration in pension services, said the brokerage.
“It is positioned well for strong growth due to its strategy of diversification into new verticals and now leveraging its digital transformation expertise for developing the global infrastructure in developing countries,” it added.
Protean eGov Technologies shares have seen a 12-month run of 50 percent, outperforming the front-runner Nifty 50 index, which has gained about 18 percent in the same time period.
