Protean eGov Technologies makes a flattish debut. Should you exit or hold?
Protean eGov Technologies was slightly below expectations given the healthy subscription response for the public offer.
The stock listed at Rs 792, which is the same as issue price. However, there was some buying interest in the counter post the listing as stock rose about 12% intraday.
The IPO, which was entirely an offer for sale of 61.9 lakh shares, was booked 24 times at close.
«We believe the overhang and flat listing was due to offer structure, which is entirely an OFS and hence the company will not get any money from the offer for future growth,» said Prashant Tapse of Mehta Equities.
Analysts advised short-term investors to book profits, while those looking at the longer horizon may hold the stock.
«Protean eGov Technologies is a monopoly player, but the growth has already matured.
It is not a business, where there could be a huge scale up in the future and hence incremental growth is not going to be large. Investors can hold the stock for the long-term, but do not expect it to deliver multibagger returns.
Short-term investors can look to exit,» said Avinash Gorakshakar of Profitmart Securities.
Protean eGOV Technologies is a leading IT-enabled solutions company engaged in conceptualizing, developing and executing nationally critical and population scale greenfield technology solutions. It has over 25 years of experience in creating digital infrastructure and governance solutions.
The company collaborates with the government to create digital public infrastructure and innovative citizen-centric e-governance solutions.
