Overview

• Protean eGov Technologies' stock hit the 20% lower circuit on May 19 after announcing it failed to advance in the Income Tax Department's PAN 2.0 tender process.
• The PAN 2.0 project, worth Rs 1,440 crore, aims to modernize India's tax infrastructure for PAN and TAN card issuance and management.
• Management stated the decision has minimal impact on existing PAN services, but market reactions indicate broader investor concerns.
• Brokerage firm Equirus forecasts a 75–100% decline in PAN-related revenue over the next two to three years, leading to a 35% overall revenue drop by FY27.
• Equirus downgraded Protean's stock from 'Add' to 'Sell,' slashing its price target from Rs 1,730 to Rs 900, citing financial instability risks.