Informist, Tuesday, Nov 7, 2023
By Rajesh Gajra
MUMBAI – Shareholders of Protean eGov Technologies Ltd will collectively make a profit of 3.09 bln rupees when they offload their stake in the 4.9-bln-rupee initial public offer through the offer for sale, according to back-of-the-envelope calculations.
The calculations are based on the difference between the weighted average cost of acquisition by stake sellers and the upper limit of the price band in the public issue. The company’s initial public offer, with a 100% offer for sale component, opened for subscription on Monday. The price band of the issue is 752-792 rupees per share.
As per the red herring prospectus, 6.19 mln shares, or 15.3% stake, is being sold collectively by 11 shareholders. Five of these are different series of a common alternative investment fund–360 One Special Opportunities Fund–the investment manager and sponsor of which are associated with IIFL Securities.
The largest number of shares in the offer for sale is from NSE Investments Ltd which has a pre-offer stake of 24.77% in the company and is offloading 4.41% share. NSE Investments’ weighted average cost of the 1.78 mln shares it is selling is 55 rupees and stands to book a profit of 1.31 bln rupees at the upper end of the price band.
The story, however, is the opposite for Series 1-5 of 360 One Special Opportunities Fund are collectively selling 1.63 mln shares, or 4.04% stake. They had acquired these shares at a weighted average cost of 950.10 rupees per share and, therefore, stand to incur an aggregate loss of 258.18 mln rupees.
The other selling shareholders stand to profit from their respective sale of shares.
Deutsche Bank stands to book a profit of 528.66 mln rupees on the 0.71 mln shares it is selling in the issue, which it had acquired for 49.50 rupees per share. Similarly, HDFC Bank, which paid 49.50 rupees per share to acquire the 0.71 mln shares it is selling in the issue, stands to book a profit of 524.21 mln rupees.
Axis Bank, another selling shareholder, is also selling the same quantity of shares as Deutsche Bank and HDFC Bank, but it paid a higher acquisition price of 112 rupees for it. It, therefore, stands to garner a profit of 484.16 mln rupees from the deal.
Of the remaining two shareholders, Union Bank of India is offloading 0.4 mln shares in the offer for sale and the Administrator of the Specified Undertaking of the Unit Trust of India is selling 0.24 mln shares. The former acquired its shares at 26 rupees and stands to gain 307.17 mln rupees, while the latter’s profit will be 190.03 mln rupees, based on its acquisition cost of 10 rupees.
None of the selling shareholders is exiting completely from the company. Post-issue, NSE Investments will hold a 20.36% stake, while Series 1-5 of 360 One Special Opportunities Fund will collectively hold 21.41%.
Among other selling shareholders, HDFC Bank, Axis Bank, and Deutsche Bank, will each hold a 3.18% stake after the issue. Further, the Administrator of the Specified Undertaking of the Unit Trust of India will hold a 6.15% stake in the company and Union Bank of India will hold 1.79%.
Protean eGov Technologies also has other shareholders who are not offloading any shares in the offer for sale. The biggest one among these is State Bank of India which has a 4.94% stake, followed by 360 One Special Opportunities Fund-Series 7, which holds a 4.11% stake.
Further, Citicorp Finance India, The Hong Kong and Shanghai Banking Corp, and Standard Chartered Bank each hold a 3.09% stake. Punjab National Bank holds 2.26% shares, while Bank of Baroda has a 1.55% stake, and Canara Bank has a 1.24% stake.
SHARE HISTORY
For a company which is an information technology solutions provider in the IT infrastructure sector, the existing class of shareholders is unique. But this is due to the unique history of the company and its capital structure.
In the legal records, the company originated as National Securities Depository Ltd in December 1995 and was purely in the depository business. The initial shareholders in the initial phase of the company included Industrial Development Bank of India, Unit Trust of India, National Stock Exchange of India, and State Bank of India.
In July 2000, the company bought back a portion of shares held by IDBI, UTI, and SBI.
In December 2012, there was a scheme of arrangement between the National Securities Depository and a newly formed NSDL Depository Ltd in which the former’s share capital was halved to 40 mln shares with the balance being cancelled.
Soon thereafter, the company changed its name to NSDL e-Governance Infrastructure, while NSDL Depository changed its name to National Securities Depository. NSDL e-Governance Infrastructure got its name changed to Protean eGov Technologies in October 2021.
The company’s entry into government projects in the IT-infrastructure space began in 2004 and 2005 with the launch of the tax information network and PAN card services. End
Edited by Deepshikha Bhardwaj
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to [email protected]
© Informist Media Pvt. Ltd. 2023. All rights reserved.
Source: Cogencis