Protean eGov Tech shares tumble 20% on sharing PAN 2.0 project update. Details here

Shares of Protean eGov Technologies Ltd slumped in Monday's trade after the company shared update from the Income Tax (I-T) department regarding PAN 2.0 project. The stock cracked 20 per cent to hit its lower price band of Rs 1,143.05.

"We were informed by the Income Tax department that we have not been considered favourably for the next round of RFP (Request for Proposals) selection process. Any further update/development in this regard shall be informed in due course," Protean eGov stated.

"In our understanding this is a project for Technology revamp which include Design, Development, Implementation, Operations and Maintenance of PAN systems at I-T department and at present, it appears to have limited or minimal impact on our ongoing PAN processing and issuance services under the existing mandate with the tax dept," it added.

The company had participated in the RFP bid proposal for the aforesaid project. The I-T department had issued a RFP inviting bids for selection of managed service provider (MSP) for its PAN 2.0 project.

Technically, the scrip traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 33.45. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the stock has a price-to-earnings (P/E) ratio of 49.50 against a price-to-book (P/B) value of 4.85. Earnings per share (EPS) stood at 23.09 with a return on equity (RoE) of 9.79. According to Trendlyne data, Protean eGov has a one-year beta of 1.3, indicating high volatility.

The stock saw high trading volume on BSE as around 1.51 lakh shares were last seen changing hands. The figure was higher than the two-week average volume of 60,000 shares. Turnover on the counter came at Rs 17.83 crore, commanding a market capitalisation (m-cap) of Rs 4,634.87 crore.

Protean eGov Tech (formerly NSDL e-Governance Infrastructure) develops citizen-centric e-solutions. It has played a vital role in developing the capital market infrastructure and has implemented some of the most crucial technological infrastructure in India.