Protean eGov Technologies Limited (formerly known as NSDL e-Governance Infrastructure Limited) is one of the key IT-enabled solutions companies in Bharat, engaged in conceptualizing, developing and executing nationally critical and population scale greenfield technology solutions. They collaborate with the government and have extensive experience in creating digital public infrastructure and developing innovative citizen-centric e-governance solutions. Company was originally setup as a depository in 1995 and created a systemically important national infrastructure for capital market development in India. They have been the chief architect and implementer for some of the most critical and large-scale technology infrastructure projects in India. They were among the leading Indian companies in the e-governance sector in terms of profitability, operating income, operating profit and operating profit margin in Fiscal 2023. Since inception and as of June 30, 2023, they have implemented and managed 19 projects spread across seven ministries andautonomous bodies ushering change in public delivery of services. Company has a dedicated in-house innovation team, consisting of 47 members, as on June 30, 2023, that drives end-to-end ideation and execution of new products launches. This team collaborates with large ingredient suppliers to co-create formulations. For manufacturing, they have set up an asset-light contract manufacturing model. As of June 30, 2023, the brand agnostic, integrated supply chain comprises of 13 warehouses spread across seven districts in Bharat. Of these 13 warehouses, three warehouses are directly managed by them while management of the remaining warehouses is outsourced to third-party partners. The main warehouse, which is based in Pataudi, Haryana, acts as a central hub and distributes products to the regional warehouses in other parts of the country. As per financial performance, Protean eGov Technologies Limited has posted total income / net profits of Rs 652.02 Cr / Rs 92.18 Cr (FY21), Rs. 770.17 Cr / Rs 143.93 (FY22), Rs 783.87 Cr / Rs 107.04 Cr (FY23) and Rs 233.16 Cr / Rs 32.21 Cr (Q1 FY24). So as per previous financials data, company has shown almost static results. Company has an average EPS of Rs 28.99 and average RoNW of 14.64% for last three fiscals. Issue is priced at a P/BV of 3.60 as per NAV of 219.71 as on 30.06.23. If we attribute latest earnings of FY22, FY23, TTM and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around 22.26, 29.93, 27.15 and 24.86 respectively, which looks fully priced. As per RHP, there is no listed peers. On BRLM's front, four lead managers are associated with this IPO, and have handled around 102 IPOs in last three fiscals. ICICI Securities Limited : This is 42th IPO from this BRLM. From last 10 IPOs, two opened below issue price and remaining above issue price or at par on the day of listing. As of now, from last 10 IPOs, all are trading above issue price or at par. (As on 01.11.2023) Equirus Capital Private Limited : This is 14th IPO from this BRLM. From last 10 IPOs, two opened below issue price and remaining above issue price or at par on the day of listing. As of now, from last 10 IPOs, one is trading below issue price and remaining are trading below issue price or at par. (As on 01.11.2023) IIFL Securities Limited : This is 39th IPO from this BRLM. From last 10 IPOs, two opened below issue price and remaining above issue price or at par on the day of listing. As of now, from last 10 IPOs, two are trading below issue price and remaining are trading above issue price or at par. (As on 01.11.2023) Nomura Financial Advisory and Securities (India) Private Limited : This is 11th IPO from this BRLM. From last 10 IPOs, six opened below issue price and remaining above issue price or at par on the day of listing. As of now, from last 10 IPOs, five are trading below issue price and remaining are trading above issue price or at par. (As on 01.11.2023) As per financials, Protean eGov Technologies Limited has shown almost static results, RoNW is 12.49% and P/E is respectively 22.26, 29.93, 27.15 and 24.86 as per FY22, FY23, TTM and annualised FY24 earnings. So, issue looks fully priced with no visible growth in last 5 years. Company is in business of IT-enabled e-Governance projects. Performance of BRLM is good. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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