Shares of Protean eGov Technologies Ltd. plunged another 10% on Tuesday, May 20, extending their two-day slide to over 30%, as investor sentiment remained jittery following the company’s failure to secure the PAN 2.0 project mandate from the Income Tax Department.
This sharp correction comes despite the company’s management assuring investors during its earnings call that there will be no immediate impact on business. The management clarified that the PAN 2.0 project pertains to a long-term technology revamp initiative and does not affect Protean’s ongoing core operations in PAN card processing and distribution.
The company added that nearly three-fourths of PAN applications currently flow through its distribution channels, which are unaffected. PAN 2.0, which targets the online segment, is still at least two years away from rollout, according to company executives.
On Sunday, Protean disclosed in a filing that it had participated in the Income Tax Department’s RFP (Request for Proposal) process to act as a Managed Service Provider (MSP) for the PAN 2.0 project but was not selected. It reiterated that this does not affect its existing mandate.
Brokerage Equirus, however, took a bearish view, stating that PAN-related services contribute to nearly 50% of Protean’s revenue and have historically funded its new initiatives. The brokerage downgraded the stock to sell from add and sharply cut its price target to ₹900 from ₹1,730.
In contrast, Anand Rathi maintained a relatively positive stance, citing limited financial implications and calling the development more of a sentiment-driven reaction.
As of the March 2025 quarter, public shareholders include market veteran Ramesh Damani (1.05%) and Ajay Aggarwal (1.12%). Institutional investors like SBI (4.93%), Axis Bank (3.18%), and PNB (2.25%) also hold stakes. Retail investors form a significant base with 39% ownership across 1.98 lakh individual shareholders.
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