Protean eGov Technologies' shares saw another sharp decline on Tuesday after the company failed to qualify for the Income Tax Department’s (ITD) PAN 2.0 project. The shares of the tech company had already crashed 20% on Monday following the news.
Earlier, ITD had issued a Request for Proposal (RFP) inviting bids for the selection of a Managed Service Provider (MSP) for the design, development, implementation, operations and maintenance of its PAN 2.0 project. Protean eGov Technologies participated in the bidding process for this project.
"In our understanding this is a project for Technology revamp which include Design, Development, Implementation, Operations and Maintenance of PAN systems at ITD and at present, it appears to have limited or minimal impact on our ongoing PAN processing and issuance services under the existing mandate with the ITD," Protean eGov Technologies said in an exchange filing.
At 12:35 am, shares of Protean eGov Technologies were trading at Rs 1,052.80 price level, down by 7.91% on the National Stock Exchange.
"We were informed by the Income Tax Department (ITD) that we have not been considered favourably for the next round of RFP selection process," the filing further read.
The management also clarified that the PAN 2.0 project is not related to the processing and distribution segment of the business, which the company is currently involved in.
Protean eGov Share Outlook
The shares of the IT services and e-governance solution provider have experienced a double-digit drop of 45% on the Bombay Stock Exchange so far this year. The stock has struggled to trade in the green territory. Even in the last 5 years, the shares have remained in the red.
The stock is down by over 50% from its 52-week high of Rs 2,225 price level.
