No respite for Protean eGov Technologies. After Monday’s 20% lower‑circuit freeze, the stock slumped another 11% intraday, sinking to a fresh 52‑week low of Rs 981.10. This sharp fall in the share price of Protean eGov Technologies came after the failed bid to move forward in the Income‑Tax Department’s high‑stakes PAN 2.0 project.
What tripped the wires?
The panic began after Protean disclosed in an exchange filing that it had not qualified for the next stage of the Income Tax Department’s high-stakes PAN 2.0 project. The company had submitted a bid to become the Managed Service Provider (MSP) for the proposed platform but was not selected to move forward.
“In our understanding this is a project for Technology revamp which include Design, Development, Implementation, Operations and Maintenance of PAN systems at ITD 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 ITD. We were informed by the Income Tax Department (ITD) that we have not been considered favourably for the next round of RFP selection process,” the company said through an exchange filing on May 18.
Management calms nerves, but market stays wary
In an attempt to ease market concerns, the company’s management addressed analysts and investors, clarifying that PAN 2.0 would not have any immediate impact on its current operations. They highlighted that the existing PAN processing and distribution contract remains unaffected and continues to contribute to revenues. In fact, they pointed out that nearly 75% of PAN applications currently come through physical distribution channels, a space where Protean remains dominant.
Further, the PAN 2.0 platform, which focuses on digital transformation, is expected to take at least two years to become fully operational. Until then, the management assured, the company’s core business remains stable.
Protean eGov Technologies share price
In the last two trading sessions, the share price of the company has fallen nearly 30%. Over the last five trading days, it has tumbled 22%. Looking at a one-month basis, the stock is down 29%, and so far in 2025, the share price has declined by nearly 29%.