Shares of Protean e-Gov Technologies plummeted 20% in trade on May 19 and were locked in the lower circuit at Rs 1,143.20. This was after a selloff ensued in the counter as the company failed to secure the PAN 2.0 project, touted by the Income Tax Department.
In an exchange filing, the company confirmed that it had not been shortlisted for the next stage of the Request for Proposals (RFP) process. The PAN 2.0 project involves a comprehensive technology overhaul for the design, development, implementation, operations, and maintenance of the PAN system.
Protean had placed a bid for this critical project, which was expected to be a key growth driver in the government’s digital infrastructure initiatives. However, the Income Tax Department informed the company that it had not been considered favourably for the subsequent round of selection.
Despite the setback, Protean’s management noted that the development is expected to have limited or minimal impact on its existing services related to PAN processing and issuance, which continue under the current mandate. The company reiterated its ongoing commitment to building digital public infrastructure and supporting e-governance projects across various government bodies in India.
Protean e-Gov shares also come under the spotlight as veteran investor Ramesh Damani features in the list of the public shareholders of the company, holding a 1.05% stake as of the March quarter. Another major individual investor, Ajay Aggarwal, who holds a slightly higher stake at 1.12%.
While the company does not have any promoter shareholding, its ownership is backed by several major lenders. These include Canara Bank with a 1.23% stake, Bank of Baroda at 1.54%, Punjab National Bank at 2.25%, Axis Bank with 3.18%, and State Bank of India holding the largest institutional stake at 4.93%.
