Incorporated in 1995, Protean eGov Technologies Limited is one of the key IT-enabled solutions providers in India. The company is engaged in the development and execution of critical national-level greenfield technology projects.
As of 30 June 2023, the company has implemented and managed 19 projects across seven ministries and autonomous bodies. It collaborates with the government to create digital public infrastructure and citizen-centric e-governance solutions.
Some of the company’s projects include a Permanent Account Number or PAN, a Tax Information Network or TIN, building the core IT infrastructure for the National Pension System or NPS, Atal Pension Yojana, National Pension Scheme, Aadhar Authentication, e-KYC and E-sign.
It works with the Ministry of Finance, the Ministry of Education, the Ministry of Information and Broadcasting, Ministry of Electronics and Information Technology, the Ministry of Skill Development and Entrepreneurship. It operates a phygital (physical + digital) model with a pan-India physical network of 1,67,000 centres.
Between FY21 and FY23, it has seen a CAGR rise of 7% in its revenue from operations and 5% in its profit. Moreover, India’s taxpayer base is expected to expand at a CAGR of 9-10% to reach 170 million by FY26. In addition, some government schemes, such as Pradhan Mantri Jan Dhan Yojana and Pradhan Mantri Mudra Yojana, require a PAN card as proof of identity. These factors necessitate the issuance of PAN cards, which could be beneficial for the company.
And now, Protean eGov Technologies Limited is coming out with its initial public offer (IPO). The entire IPO will be an offer for sale and the money raised through this IPO will be received by the selling shareholders. Its shares will be listed on the BSE.
- One of the key IT-enabled solutions companies in India. Engaged in the development and execution of critical national-level greenfield technology projects.
- Collaborates with the government to create digital public infrastructure and citizen-centric e-governance solutions.
- Caters to seven ministries and autonomous bodies.
- Projects include Permanent Account Number or PAN, Tax Information Network or TIN, building the core IT infrastructure for National Pension System or NPS, Atal Pension Yojana, National Pension Scheme, Aadhar Authentication, e-KYC and E-sign.
- Has implemented and managed 19 projects as of 30 June 2023.
- Operates a phygital (physical + digital) model and has a pan-India physical network of 1,67,000 centres as of 30 June 2023.
- CAGR rise of 7% in its revenue from operations and 5% in its profit between FY21 and FY23.
- India’s top IT-enabled e-governance service provider in terms of profitability and operating income in FY23, according to a CRISIL report.
- Secure, scalable and advanced technology infrastructure wherein its ONDC (Open Network for Digital Commerce) platform is live in 400+ cities, its TIN project has handled 1,56,132 e-tax transactions per hour on a day in FY23 along with over 3.22 million PAN applications on average per month.
- Its PAN and TIN facilitation centres cover over 12,000 pincodes across 700+ districts in India as of 30 June 2023.
- Diversified offerings that cater to various sectors such as tax administration, pension record keeping solutions, national identity and identity authentication solutions, and education and skill financing solutions.
- Track record of healthy financial performance with EBITDA margins of 14%, 17% and 15% in FY21, FY22 and FY23 respectively.
- Backed by marquee investors such as NSE Investments, IIFL, SUUTI, Citicorp Finance, State Bank of India, Punjab National Bank, Union Bank of India, Bank of Baroda, Canara Bank, HDFC Bank, Axis Bank, Deutsche Bank A.G, The Hong Kong and Shanghai Banking Corporation, Standard Chartered Bank etc.
Risks and threats
- Substantially dependent on projects awarded by government entities and agencies. Also, these contracts can be terminated from clients once the project is completed.
- Witnessed an attrition rate of 3%, 17% and 16% in FY21, FY22 and FY23, respectively, in its employees.
- Subjected to selection criteria set for high value contracts by the Government.
- Faces competition from CDSL Ventures, CMS Computer, Computer Age Management Services, CSC E-Governance Services, Karvy Data Management Services, Kfin Technologies Private,
- Total trade receivables stood at ₹208 crore in FY23. Any delay in the collection of receivables from clients could impact its business operations.
- Derives a significant portion of its revenue from a limited number of clients.
You can now apply for the Protean eGov Technologies IPO on Upstox here.