Protean eGov Technologies shares drop 10% as NSE Investments plans to sell 20% stake through an OFS

The shares of Protean eGov Technologies, a Mumbai-based technology company in India, dropped significantly by nearly 10% during the morning trade on the BSE and NSE. Shares opened at ₹1,690 on the NSE on Friday, November 22, crashing from the previous close of ₹1,849.75, and fell to an intraday low of ₹1,666 apiece.

This development comes as the National Stock Exchange (NSE) announced on Thursday that it is planning to sell a 20.31% stake in the company through an offer-for-sale (OFS) with the base price set at ₹1,550 per share, according to reports.

OFS details

The OFS is being carried out by NSE Investments, which is a wholly-owned subsidiary of NSE. It is responsible for making strategic investment decisions for the exchange.

The sale starts today and will consist of a base issue of 10.16% equity and a green shoe option for an additional 10.16% equity. This means that the initial sale will have NSE divesting 10.16% of its stake in the company, up to 41,17,303 shares of the company, with an additional sale of 10.16% as per demand and in the event of oversubscription.

For non-retail investors, the OFS opened on November 22. It will open on November 25 for retail investors.

About Protean eGov Technologies

Protean eGov Technologies provides e-governance solutions for social security welfare programs like the National Pension Scheme (NPS) and the Atal Pension Yojana. It is a key IT-enabled solutions provider in India, implementing large-scale technology solutions for the country. Collaborating efficiently with the government, the company has vast experience in building digital public infrastructure and creating innovative e-governance solutions.

Since the listing of the company’s shares on the exchanges in November last year, the stock has given considerable returns to the investors.

The company posted a net profit of ₹28 crore and revenue of ₹219 crore for the second quarter of the current fiscal year (Q2 FY25). The net profit for the quarter decreased by 15% YoY but grew by 33% sequentially.

The shares of the company were trading at ₹1,687, down by 8.8%, at 1:28 pm on the NSE on Friday, November 22.