Shares of Protean eGov Technologies dropped 9.9% in early trading on Friday, November 22, hitting an intraday low of ₹1,666.1 per share on the Bombay Stock Exchange (BSE). This decline followed the announcement of a stake sale by NSE Investments, which plans to offload up to 20.3% of its shares via an offer-for-sale (OFS) from November 22 to 25.
The move has sparked selling pressure in the stock, drawing attention from investors focused on share market investments.
NSE Investments proposes a large stake sale
At 9:24 AM, Protean's share price was down by 7.57%, standing at ₹1,709.75 per share on the BSE. The broader market, however, was in the green, with the BSE Sensex up by 0.52% at 77,556.02. The market capitalisation of Protean eGov Technologies was ₹6,944.56 crore at the time.
In a regulatory filing, the company revealed that NSE Investments intends to sell 41,17,303 shares, representing a 10.16% base stake via the OFS. The floor price for the sale has been set at ₹1,550 per share. Furthermore, NSE Investments has opted for a green shoe option, allowing it to sell an additional 10.16% of shares in case of oversubscription.
What is the green shoe option?
The green shoe option permits the seller to offer additional shares if there is strong demand, providing extra flexibility in the sale process. This move has been utilised to address any over-demand for shares during the OFS.
Protean eGov Technologies and its role in digital transformation
Protean eGov Technologies is a leading Indian tech company focused on e-governance and digital solutions for the public sector. It provides services such as e-taxation, online payments, digital identity management, and data management to government entities. By offering secure and scalable infrastructures, Protean helps improve government operations and citizen engagement.
The company also supports digital platforms and solutions in sectors like education, healthcare, and welfare, playing a crucial role in India’s digital transformation. Additionally, Protean facilitates digital financial services, including tax filing and digital payments.
Key takeaways
Protean’s share market investment has gained 64.4% in the past year, outpacing the Sensex’s 17% rise, but the latest OFS announcement has prompted a sell-off.
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