NSDL e-Governance Infrastructure Ltd IPO

Upcoming DRHP

IPO Synopsis

IPO Synopsis
Protean e-Gov Technologies Ltd has filed a DRHP with SEBI on 24 December 2021. The issue is entirely an offer for sale of up to 12,080,140 equity shares. The book running lead managers to the issue are ICICI Securities, IIFL Securities, Equirus Capital Pvt Ltd and NOMURA Financial Advisory. 


Objectives of the issue
The main objective is to reap the benefits of being listed on the stock exchanges, the company will not receive any money from the offer for sale.
 

About NSDL e-Governance Infrastructure Ltd

In 1995, Protean was initially set up as a depository and they created a systematically important national infrastructure for capital market development in India.  The solutions provided by the company have led to identification of bottlenecks in government services, increased transparency and efficiency, redefined delivery of public services and led to a reduction in service delivery costs, according to the company. 
They are an IT enabled solutions company and Protean is engaged in conceptualizing, developing and executing nationally critical and population scale greenfield technology solutions. In FY20, they were hailed as the leading Indian e-Governance company in terms of profitability, operating income, operating margin and operating profit. 
Since the company’s inception, they have implemented and managed 18 projects spread across seven ministries and autonomous bodies ushering change in public delivery of services. They are primarily engaged with the following ministries- 
•    Ministry of Finance
•    Ministry of Information and broadcasting
•    Ministry of Education
•    Ministry of Electronics and Information Technology
•    Ministry of Communications
•    Ministry of skill development and entrepreneurship 
A few of their renowned shareholders include IIFL, NSE Investments Limited, SUUTI, Citicorp Finance India Limited, a few public and private sector banks such as State Bank of India, Punjab National Bank, Union Bank of India, Bank of Baroda and Canara Bank, HDFC Bank Limited, Axis Bank Limited, Deutsche Bank A.G, The Hong Kong and Shanghai Banking Corporation Limited, Standard Chartered Bank, among others.
 

Financials

Particulars

(In Rs cr)

Q1 ended 30 June, 2021

FY21

FY20

FY19

Revenue

134.5

603.1

716.1

755.2

PAT

10.2

92.19

121.86

123.53

EPS (In Rs)

2.53

23

30.41

30.86

ROE (%)

1.5%

13.81%

16.17%

18.56%

ROCE (%)

1.79%

17.10%

20.64%

26.38%

 

Particulars

(In Rs cr)

Q1 ended 30 June, 2021

FY21

FY20

FY19

Total Assets

874.96

862.4

939.8

869.6

Equity Share Capital

40.14

40.14

40

40


The key points are- 

Key Points

  • Strengths

    1.    Protean e-Gov is a pioneer and market leader in universal, citizen centric and population scale e-governance solutions
    2.    They have a very advanced technological infrastructure which gives them a competitive advantage 
    3.    They have a large amount of physical infrastructure along with a pan-India presence
    4.    They have a very experienced and qualified senior management team
     

  • Risks

    1.    A substantial portion of the revenue is derived from government entities and agencies and so, the company’s relationship with GoI entities exposes them to risks inherent in doing business with them, which may adversely affect the business
    2.    The company’s reputation could be at stake if confidential information or sensitive data is leaked, inadvertently
    3.    The company may not be able to provide business solutions that meet the clients’ requirements, which could lead to clients discontinuing their work with Protean, which in turn could harm their business
    4.    Their business will suffer if they fail to anticipate and develop new services and further augment  the existing services in order to keep pace with rapid changes in technology and in the industries in which the company functions
     

How to apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

  • Approve the mandate request on your UPI and funds will be blocked

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