Protean eGov Share Price: Plunges 20% after losing PAN 2.0 project bid

Shares of Protean eGov Technologies plummeted 19.99 per cent to end at ₹1,143.20 on the National Stock Exchange (NSE) today, following the company’s announcement that it has been eliminated from the Income Tax Department’s PAN 2.0 project bidding process. The shares hit its 52 week low and ended its trade in the lower band.

In a regulatory filing on Sunday, Protean informed exchanges that it “has not been considered favourably for the next round of RFP selection process” by the Income Tax Department (ITD). The stock dropped by ₹285.70 as investors reacted to the news.

The PAN 2.0 project involves the design, development, implementation, operations, and maintenance of the Permanent Account Number systems at the ITD. Protean had submitted a bid proposal after the ITD issued a Request for Proposals (RFP) for selecting a Managed Service Provider for the project.

Equirus Securities downgraded the stock to “SELL” from “ADD” with a revised target price of ₹900, citing material negative impact on the company’s outlook. According to their research report, PAN services contribute approximately 50 per cent of Protean’s total revenues and have been a key driver of profitability and free cash flow. Analysts expect a 75-100 per cent collapse in this revenue stream over the next 2-3 years, with approximately 35 per cent decline projected for FY27.

Additional headwinds for the company include an impending NPS pricing revision in FY27 and stagnant ONDC retail volumes, which have plateaued at around 7 million per month over the last five months. As a result, Equirus has slashed FY27 PAT estimates by 58 per cent.

In its filing, Protean noted that the project appears to be primarily a technology revamp with “limited or minimal impact” on the company’s ongoing PAN processing and issuance services under its existing mandate with the ITD.

Protean eGov Technologies, formerly known as NSDL e-Governance Infrastructure Limited, is a key provider of e-governance technology solutions. The company had previously informed exchanges about its participation in the PAN 2.0 bidding process on August 31, 2024.

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Published on May 19, 2025