Protean eGov Technologies IPO : 7 things to know

Protean eGov Technologies Ltd (formerly called NSDL E-Governance Infrastructure Ltd), a leading IT enabled services infrastructure enabler, had filed its draft red herring prospectus (DRHP) in late December 2021 and SEBI is yet to give its observations and approval for the IPO.

Normally, such IPOs are approved by SEBI within a period of 2 to 3 months unless there are specific queries or clarifications that the regulator has with regards to the IPO.

The NSDL IPO will be a complete offer for sale (OFS) with no fresh issue component. The next process in the IPO will be commenced after the approval from SEBI is received.
 

7 important things to know about the Protean eGov Technologies Ltd IPO

1) Protean eGov Technologies Ltd has filed for an IPO with SEBI which comprises of an offer for sale of 1.20 crore shares. There will be no fresh issue component in the IPO.

The IPO price band will be announced by the company only after the SEBI approval and that is where the size of the IPO will be known. The company has disclosed in the draft red herring prospectus that the total size of the issue would be in the vicinity of Rs.1,300 crore or thereabouts.

2) Let us talk about the offer for sale (OFS) portion of the IPO in detail, since there is no fresh issue component in this issue.

A total of 1.20 crore shares will be sold by some of the early investors as part of the offer for sale. The OFS component will not result in any fresh fund infusion or dilution of the capital or the EPS. However, the selling of stake by the early will increase the free float of the company and facilitate listing of the stock.

3) There is a list of marquee names that will be offering their shareholdings in Protean eGov Technologies as part of the offer for sale.

Those offering shares in the OFS will inter alia include the IIFL Special Opportunities Funds, National Stock Exchange (NSE) Investments, Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI carved out of US-64 in 2001), HDFC Bank, Axis Bank, Deutsche Bank AG, Punjab National Bank and Union Bank of India.

Most of these institutions had taken a stake as part of the seed equity of the company and will be looking to exit and monetize their investment in this company.
 

4) Protean eGov Technologies has been positioned as one of the key catalysing agents to developing government related IT solutions. In fact some of the major e-Governance projects of the government have been designed, planned and executed by Protean eGov Technologies.

Broadly, the company is one of the key IT-enabled solution providing companies in India and it is engaged in conceptualizing, developing and executing nationally critical and population scale greenfield technology solutions.

5) Protean eGov Technologies has collaborated with the government on various mission critical projects in the past. With hundreds of man years of cumulative project conceptualization and execution across a plethora projects, it has developed a rich library of experience in creating digital public infrastructure.

In addition, at any point of time, Protean eGov Technologies is also deeply involved in developing innovative citizen-centric e-governance solutions. It has worked in a number of important e-governance projects relating to centralized utility payments, land records, record of vital statistics etc.

6) Protean eGov Technologies was originally set up as a depository company in the year 1995. It was responsible for creating the systemically important national infrastructure for capital market development in India, which includes the all-depository, broker backbone. Subsequently, it was separated as a technology enabling company. The company is proposed to be listed on the BSE and the NSE.

7) The IPO of Protean eGov Technologies Ltd will be lead managed by ICICI Securities, Equirus Capital, IIFL Securities and Nomura financial Advisory. They will act as the sole book running lead managers or BRLMs to the issue.

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