New Delhi: Shares of Protean eGov Technologies Ltd continued to decline for the second consecutive session in Tuesday’s trade. This has extended their two-day rout to nearly 30%. After plunging 20% on Monday, the stock dropped another 13% in early trade.

Reasons Behind Protean Stocks Freefall

Protean’s stock fell after the Income Tax department turned down the company’s bid for the managed service provider (MSP) contract under the PAN 2.0 project. The project includes design, development, operations and maintenance of the PAN system, a business area in which Protean has long been a major player.

“We were informed by the Income Tax department that we have not been considered favourably for the next round of RFP (Request for Proposals) selection process. Any further update/development in this regard shall be informed in due course,” Protean stated.

Protean tried to reassure investors, stating that the development would have “limited or minimal impact on our ongoing PAN processing and issuance services under the existing mandate with the tax dept.”

Protean eGov Technologies Limited is an Indian technology company that specialises in developing digital public infrastructure and e-governance initiatives for various governmental entities in India.

Meanwhile, stock Exchange has sought clarification from Protean eGov Technologies Ltd on May 20, 2025, with reference to news appeared regarding the company’s shares plunge, for which the reply is awaited.