Shares of Protean eGov Technologies Ltd extended its free fall during the trading session on Tuesday after the e-governance solutions provider said that it has not been shortlisted by the Income Tax department to design and develop the PAN 2.0 project. The company informed about the same through an exchange filing on Sunday.
The update had sent the stock sliding 20 per cent on Monday to settle at Rs 1,143.05 on Monday. The stock had tanked another 14 per cent to Rs 981.55 on Tuesday, but finally settled at Rs 1048.65, down 8.25 per cent for the day. The stock is down 27 per cent in two days. The company commanded a total market capitalization of little more than 4,250 crore.
Protean eGov Technologies has disclosed that it is no longer in contention for GOI’s PAN 2.0 project, having been eliminated from the RFP race. The government plans to overhaul PAN/TAN services under PAN 2.0 with a Rs 1,440 crore budget. Despite earlier confidence, PROTEAN is now completely out of the running, said Equirus Securities.
“This is a material negative, as PAN services contribute 50 per cent of the company’s revenue. While FY26 impact may be muted, we expect a 75-100 per cent collapse in this revenue stream over the next 2-3 years. This segment has historically generated free cash that funded new initiatives — now under threat,” it said.
Additional headwinds include an impending NPS pricing revision in FY27 and stagnant ONDC retail volumes, which have plateaued at ~7mn/month over the last five months, posing further downside risk to FY27E revenues, Equirus added. Citing the current risks, it has slashed FY27 PAT estimates by 58 per cent and downgrade the stock to ‘sell’ with a target price of Rs 900.
Listed in November 2023, Protean eGov Technologies had raised a total of Rs 490.33 crore via IPO by selling its shares for Rs 792 apeice. The stock hit 52-week high at Rs 2,225, but it is currently down 53 per cent from those levels. However, it is 33 per cent above its IPO price.
Veteran Dalal Street investor Ramesh Damani owned 4,26,069 equity shares, or 1.05 per cent stake, in the company as of March 31, 2025. The seasoned investor has lost more than Rs 16.36 crore of its value. His stake in the company is currently valued at Rs 44.68 crore as of Tuesday’s close.
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