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After plunging 20% in Monday’s session, shares of Protean eGov Technologies continued their downward spiral on Tuesday; Know why
Protean eGov shares tank 13% on Tuesday
After plunging 20% in Monday’s session, shares of Protean eGov Technologies continued their downward spiral on Tuesday, falling another 13% in early trade. The sharp sell-off comes after the company was not selected by the Income Tax Department for a major technology revamp project involving the design, development, implementation, operations, and maintenance of the PAN system. The stock, backed by veteran investor Ramesh Damani, has now shed nearly 30% over two days amid investor concerns about future growth prospects.
Protean eGov Technologies has seen a steep correction, with its shares plunging over 30% in the last two trading sessions. On Tuesday morning, the stock was trading around Rs 995, and if the downward momentum persists, it may soon test its 52-week low of Rs 930.
The sharp decline comes after the company disclosed in a regulatory filing on Sunday that it had not been selected by the Income Tax Department (ITD) for the next stage of the Request for Proposal (RFP) process. The project in question involves the complete technology overhaul of the PAN system, including its design, development, implementation, operations, and maintenance.
Despite this setback, the company stated that the development is likely to have limited or minimal impact on its ongoing PAN issuance and processing services under its current mandate with the ITD.
Protean had bid to become the Managed Service Provider (MSP) for the ITD’s PAN 2.0 initiative but was not shortlisted for further consideration. The stock, which had posted significant gains over the past year, has now surrendered all of its annual returns and is currently down around 15% over the last 12 months.
Notably, veteran investor Ramesh Damani held a 1.05% stake in the company as of the March 2025 quarter. Among institutional investors, Canara Bank owns 1.23%, Bank of Baroda holds 1.54%, Punjab National Bank 2.25%, Axis Bank 3.18%, and State Bank of India has the largest holding at 4.93%.
According to data from Trendlyne, analysts currently have two buy ratings and one sell call on the stock, with an average target price of Rs 1,896, implying a potential upside of around 66% from current levels.
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