Protean eGov shares plunge 20% after losing PAN 2.0 project bid

Shares of Protean eGov Technologies plummeted 19.99 per cent to ₹1,143.20 in early trading on the National Stock Exchange (NSE) today, following the company’s announcement that it has been eliminated from the Income Tax Department’s PAN 2.0 project bidding process.

In a regulatory filing yesterday, Protean informed exchanges that it “has not been considered favourably for the next round of RFP selection process” by the Income Tax Department (ITD). The stock dropped by ₹285.70 as investors reacted to the news.

The PAN 2.0 project involves the design, development, implementation, operations, and maintenance of the Permanent Account Number systems at the ITD. Protean had submitted a bid proposal after the ITD issued a Request for Proposals (RFP) for selecting a Managed Service Provider for the project.

In its filing, Protean noted that the project appears to be primarily a technology revamp with “limited or minimal impact” on the company’s ongoing PAN processing and issuance services under its existing mandate with the ITD.

Protean eGov Technologies, formerly known as NSDL e-Governance Infrastructure Limited, is a key provider of e-governance technology solutions. The company had previously informed exchanges about its participation in the PAN 2.0 bidding process on August 31, 2024.