Protean eGov Technologies share price crashes 10% as OFS by NSE Investments for 20.3% stake sale starts today

Stock Market Today: Protean eGov Technologies share price crashed 10% on Friday, November 22 as an offer for sale (OFS) by NSE Investments for a 20.3% stake sale starts opened today. The floor price of ₹1,550 has been set for Protean eGov's OFS which is significantly lower than the previous day's closing price of ₹1,849.75.

Protean eGov Technologies share price opened at ₹1,690 on the BSE on Friday, more than 8% lower than the previous close of ₹1,849.75. Protean eGov share price dipped further to the intra-day low of ₹1,666, marking a decline of 10%.

NSE Investments Ltd, a non-promoter shareholder of Protean eGov Technologies Ltd, has proposed to sell up to 20.31% stake in the company.

Protean offers e-governance services for social security welfare programs like the National Pension Scheme (NPS) and the Atal Pension Yojana, as well as infrastructure connected to taxes. It also has a subsidiary for the account aggregation business, which the Reserve Bank of India (RBI) regulates.

OFS details

As per the release on the exchanges, NSE Investments proposes to sell up to 41,17,303 equity shares of the company (representing approximately 10.16% of the total issued and paid-up equity share capital of Protean eGov), on November 22, which happens to be the base offer size for non-retail investors only.

On November 25, 2024, the offer will be available for retail investors.

There is also a green shoe option for an additional 10.16% equity stake sale. In case of oversubscription, there is an option to additionally sell up to 41,17,302 equity shares (representing approximately 10.16 % of the total issued and paid-up equity share capital of the company).

Multibagger returns for investors

The share price of Protean eGov Technologies was flat when it was listed on the stock exchanges in November 2023. The share listing price and the ₹792 issue price were identical. The Protean eGov Technologies, however, has given strong returns to investors thereafter. The stock is up 53% in the last one year.

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