NSE Investments-backed stock increases its stake in ONDC: A proxy play for ONDC growth- A must-add to your watchlist!

The company has a proven track record of collaborating with the government, contributing to the creation of digital public infrastructure, and innovating citizen-centric e-governance solutions

Indian markets are currently grappling with heightened selling pressure, particularly in the afternoon session, as the Nifty 50 experiences a decline of nearly 0.90 per cent, trading below the crucial 21,400 mark. While Nifty Pharma and Nifty IT remain resilient, all other sectors are witnessing a downturn, notably with Nifty Media registering a substantial decline of almost 10 per cent.

Amidst this market turbulence, there is a noteworthy development in Protean eGov Technologies Ltd. The stock reached a low of Rs 1272 but has been on a recovery path since then. The company recently announced the allotment of 5,00,000 equity shares, each valued at Rs 100, at par by Open Network for Digital Commerce (ONDC). This infusion represents an additional investment of Rs 5 crore in ONDC, bringing the total equity investment by Protean eGov Technologies Ltd in ONDC to Rs 25 crore, constituting 3.85 per cent of the paid-up equity shares capital.

Protean eGov Technologies Ltd (PETL) stands out as a leading IT-enabled solutions company in India, specializing in conceptualizing, developing, and executing nationally critical and population-scale greenfield technology solutions. The company has a proven track record of collaborating with the government, contributing to the creation of digital public infrastructure, and innovating citizen-centric e-governance solutions. Established in 1995 as a depository, PETL evolved into a systemically important national infrastructure for capital market development in India. Over the years, it has been instrumental in spearheading critical and large-scale technology infrastructure projects across various ministries and autonomous bodies.

As of June 30, 2023, PETL has successfully implemented and managed 19 projects, showcasing its commitment to transforming public service delivery. The company has adapted to technological advancements through continuous investments and possesses domain knowledge across various industries, enabling the development of functionalities tailored to the specific needs of end-users, businesses, and public entities.

Notably, PETL's market share is significant, with 45 per cent in PAN issuance, 58 per cent in TIN, 94 per cent in NPS, and a full 100 per cent in Atal Pension Yojana (APY). Embracing an impact-weighted framework, the company prioritizes the Environment, Social, and Governance (ESG) framework in all its business decisions.

Listed in November of the previous year at Rs 792 against an issue price of Rs 792, the stock of Protean eGov Technologies Ltd is currently trading around Rs 1282 per share on the BSE.

It's worth noting that NSE Investments Ltd, a wholly-owned subsidiary of NSE, plays a pivotal role in this scenario. Established to make strategic investments in equity shares and/or other securities of NSE group companies, NSE Investments focuses on exploring opportunities in diverse areas such as Technology, Indices, Education, Private Marketplaces & Exchanges, Payments, Database Services, Trading Platforms, Exchanges, and Machine Learning. Holding a substantial 20.36 per cent stake in Protean eGov Technologies Ltd, NSE Investments aligns its objectives with embracing new technology platforms and product areas that can significantly impact the capital market eco-system.