Mumbai, May 19, 2025 — Shares of Protean eGov Technologies Ltd. plunged 20% on Monday, hitting the lower circuit after the company revealed it had not been shortlisted for the next phase of the PAN 2.0 project by the Income Tax Department (ITD).

The stock nosedived to ₹1,143.05 on the BSE and ₹1,143.20 on the NSE, sharply down from the previous close of ₹1,428.90. Trading volumes surged in response to the news, with 3.57 lakh shares exchanged on the BSE and 13.99 lakh on the NSE, significantly above the monthly average.

The steep decline came after Protean, in an exchange filing on Sunday, disclosed that it was not selected for the next round in the Request for Proposal (RFP) process floated by the ITD for appointing a Managed Service Provider (MSP). The RFP involves design, development, implementation, operations, and maintenance of the department’s revamped PAN 2.0 system.

“We were informed by the Income Tax Department that we have not been considered for the next round of the RFP selection process,” the company said in the filing.

“In our understanding, this project relates to a technology revamp of the PAN system and, at present, appears to have limited or minimal impact on our ongoing PAN processing and issuance services under the existing mandate with the department,” Protean added.

Investors React Sharply

The development triggered a sharp sell-off, particularly among retail investors, who hold a significant 39% stake in the company. As of the March 2025 quarter, there were around 1.98 lakh retail shareholders, each with share capital exposure up to ₹2 lakh.

Notably, veteran investor Ramesh Damani holds a 1.05% stake, while Ajay Aggarwal owns 1.12%. Protean has no promoter holdings but is backed by several state-run banks:

• State Bank of India (4.93%)
• Axis Bank (3.18%)
• Punjab National Bank (2.25%)
• Bank of Baroda (1.54%)
• Canara Bank (1.23%)

In August 2024, Standard Chartered Bank had exited the company by selling its 3.09% stake for ₹225 crore in an open market transaction.

Stock Performance & Market Reaction

Monday’s fall marks Protean’s lowest stock level since its 52-week low of ₹930, far off from its 52-week high of ₹2,255. The company’s current market capitalisation stands at approximately ₹4,635.87 crore.

Protean was the biggest loser in the BSE’s ‘A’ group, followed by other major declines:

• Bharat Bijlee Ltd.: down 9.96% to ₹3,112.40
• Vodafone Idea Ltd.: fell 8.96% to ₹6.71
• CreditAccess Grameen Ltd.: dropped 7.14% to ₹1,118.90
• Gujarat Ambuja Exports Ltd.: down 6.86% to ₹116.15

The broader market sentiment was cautious, with investors reacting to sector-specific developments and potential disruptions from shifting government contracts.