Protean eGov shares hit a 20% lower circuit after losing the PAN 2.0 project bid. The market reacted sharply, wiping out significant investor value.
What happened?
On Monday, 19 May 2025, the shares of Protean e-Government Technologies Limited witnessed a massive decline of around 20%, bringing the share price to only ₹ 1,143.20. The company’s announcement of its non-selection for the next phase of the Income Tax Department’s PAN 2.0 project precipitated this decline. This news disappointed the investors, and the pressure to sell the stock in the stock market started increasing.
What is a PAN 2.0 project?
PAN 2.0 is a modern and ambitious project of the Income Tax Department, aiming to upgrade the current PAN system to become faster, more secure, and fully digital. What will happen in this?
- A new and advanced IT system will be created
- The latest tech will be used
- System maintenance and performance will become better
- Cost and resource control will improve
The primary objective is to enhance the PAN system by making it more digital, transparent, and efficient, allowing users to receive fast, secure, and hassle-free service. The system will make everything easy, whether it is applying for PAN, updating it, or using it. The system will streamline the process for taxpayers, ensuring a seamless online experience.
Why was Protean not selected?
Protean e-Gov Tech had applied to become an MSP (Managed Service Provider) for the PAN 2.0 project. However, the next round of the RFP (Request for Proposal) did not select Protean e-Gov Tech. The Income Tax Department informed the company that it was not eligible for the next round.
Will this affect the company’s existing business?
The company has informed us that the decision will not significantly impact their ongoing PAN processing and PAN card issuing work. Protean maintains a strong position in PAN services, holding a market share of approximately 64%. In the first half of FY25, 61% of the company’s total revenue was generated from PAN-related services, indicating that the PAN business continues to be a significant source of income. Therefore, despite the lack of selection for the new project, the company’s current PAN business remains robust.
Market and investor reaction to Protean eGov shares
Following the news that the PAN 2.0 project was dropped, Protean shares fell 20%, taking the stock price to ₹1,143.20. The drop has wiped out most of the company’s profit for the year, and now its stock is down more than 4% in the past 12 months.
Investor profile
Protean E-Government Technologies’ investors are quite diverse:
- Retail investors hold 39% of the company’s shares.
- Major individual investors: Ramesh Damani (1.05%) and Ajay Agarwal (1.12%)
- Institutional investors: State Bank of India (4.93%), Axis Bank (3.18%), Punjab National Bank (2.25%), Bank of Baroda (1.54%), and Canara Bank (1.23%)
This diverse investor base reflects the company’s stability and the investors’ trust. Having diverse investors provides strong financial support to the company, which helps in its growth and meeting market challenges.
Analyst’s Opinions and Prospects
Although the company did not receive the PAN 2.0 project, analysts see its long-term prospects as positive. Based on the trendline, the average target price for the company’s stock is ₹2,104, about 47% higher than the current price. Investing.com also estimates that the stock can reach ₹2,103.75 in the next 12 months, ranging from ₹1,665 to ₹2,510.
Conclusion
Exiting the PAN 2.0 project is a short-term setback for Protean E-Government Technologies. Still, the company’s strong current position and positive analyst opinion may protect it from long-term losses. The company’s leading position in PAN services and diverse investor base will help it recover in the future.
Protean eGov’s shares have crashed heavily, and Raymond Stocks also dipped recently. But the market is not only negative —Cochin Shipyard’s shares are going up solidly due to strong orders and positive sentiment.
