Protean eGov Shares Dip 9% as NSE Plans Stake Sale

Shares of Protean eGov Technologies took a notable hit in the morning session on November 22, plunging by as much as 9%. This drop followed the National Stock Exchange (NSE) announcing plans to sell part of its stake in the company.

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Here’s what’s happening: NSE Investments, which is fully owned by NSE, intends to offload up to 20.32% of its stake in Protean through an offer for sale (OFS). The sale price has been set at ₹1,550 per share, and the OFS includes a base sale of 10.16% equity, with an option to sell an additional 10.16% (a green shoe option).

As of 9:25 AM IST, Protean’s shares were trading at ₹1,712.9 on the NSE, marking a 7.4% drop from the previous day’s closing price.

Key Details of the OFS:

Opening Dates: November 22 for non-retail investors and November 25 for retail investors.

Purpose: NSE Investments aims to realign its portfolio by reducing its stake in Protean to focus on strategic equity holdings in other companies.

Financial Snapshot:

Here’s how the company performed in the second quarter of FY25 (Q2FY25)

Net Profit: Down 15% year-on-year, from ₹33 crore in Q2FY24 to ₹28 crore. However, compared to the previous quarter, it rose by 33%.

Revenue: Dropped 7% year-on-year, sliding from ₹236 crore to ₹220 crore.

What Analysts Say:

Sharekhan by BNP Paribas is still optimistic about Protean. They’ve set a target price of ₹2,510 per share, citing its strong position in legacy service lines like workforce formalization, financial inclusion, and under-penetrated pension services. On top of that, Protean’s push to expand into new verticals and its expertise in digital transformation are seen as major growth drivers, especially for building global infrastructure.

Stock Performance:

Protean eGov Technologies has been a star performer in the past year, delivering a whopping 50% return, far outpacing the Nifty 50, which rose 18% during the same period.

In short, while today’s dip reflects the market’s reaction to NSE’s stake sale, the company’s long-term outlook seems promising according to analysts. It’s one to keep an eye on if you're tracking growth stories in tech-enabled infrastructure.