Protean eGov Tech shares crash 20% in worst-ever session; here's why
Protean eGov Technologies' stock fell as much as 20 per cent after losing out on the PAN 2.0 project
 "Protean eGov Tech shares crash 20% in worst-ever session; here's why")
Shares of Protean eGov Technologies Ltd plunged 20 per cent, hitting the lower circuit on Monday, after the Income Tax Department rejected its bid for the Managed Service Provider (MSP) contract under the PAN 2.0 project.
Protean eGov Technologies' stock fell as much as 20 per cent during the day to ₹1,143.05 per share, its worst ever intraday session so far, since its listing in November 2023. This compares to a 0.04 per cent advance in BSE Sensex as of 11:00 AM.
Shares of the company ended a five-day rally on Monday and are currently trading at the lowest level since June 2024. The stock has fallen 41 per cent this year, compared to a 5.3 per cent fall in the benchmark BSE Sensex. Protean eGov has a total market capitalisation of ₹4,634.87 crore.
Why Protean eGov shares crashed?
In an exchange filing on Sunday, the company said that the Income Tax Department did not consider it favourably for the next round of the Request for Proposals (RFP) selection process for the PAN 2.0 Project.
Protean eGov had participated in the income tax department's RFP for the selection of a managed service provider (MSP) for the design, development, implementation, operations and maintenance of its PAN 2.0 project. The said project, at present, appears to have limited or minimal impact on the ongoing PAN processing and issuance services under the existing mandate with the ITD, it said in the statement.
Protean eGov Q3 results recap
Protean eGov Technologies' net profit declined 18.22 per cent to ₹22.93 crore in the third quarter of the financial year 2024–25 (Q3 FY25) from ₹28.04 crore in the previous quarter (Q2 FY25). Revenue from operations fell 7.91 per cent to ₹202.31 crore in Q3 FY25 compared to Q2 FY25. Profit before tax (PBT) declined 24.08 per cent to ₹28.52 crore over the same period.
About Protean eGov
Protean eGov Technologies is an Indian technology company focused on providing digital solutions for e-governance and enhancing public sector services.
It offers a wide range of services, including e-taxation, digital identity management, online payments, and data management for government entities. Protean is involved in building secure, scalable digital infrastructures that streamline government operations and improve citizen engagement. ALSO READ: Delhivery jumps 15% post Q4; achieves first full year of PAT profitability
The company also collaborates with both public and private sectors to implement large-scale digital platforms and solutions aimed at transparency and efficiency. Its initiatives support various sectors such as education, healthcare, and welfare, contributing significantly to India's digital transformation.