Pace Digitek files DRHP with Sebi for ₹900 crore IPO; check key details

Upcoming IPO: Pace Digitek has filed its draft red herring prospectus (DRHP) with the capital market regulator, the Securities and Exchange Board of India (Sebi), for an initial public offering (IPO) to raise ₹900 crore.

 

The Bengaluru-based company is a multidisciplinary solutions provider focusing on the telecom passive infrastructure sector, including telecom tower infrastructure and optical fiber cables.  Here are the key details about the proposed Pace Digitek IPO: 

 

The proposed public offering would comprise a fresh issue of equity shares with a face value of ₹2, aggregating up to ₹900 crore. The company may consider an issue of equity shares aggregating up to ₹180 crore as a pre-IPO placement. If the pre-placement is completed, the amount raised under the pre-IPO allotment will be reduced from the fresh issue. The price band and minimum bid lot will be determined by the company in consultation with the book-running lead manager, according to the DRHP.

 

The company has reserved up to 50 per cent of the issue for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors (NIIs), and the remaining 35 per cent for retail investors.    The equity shares are proposed to be listed on the National Stock Exchange (NSE),  and BSE, as per DRHP.      Check: Identixweb IPO Allotment Status

 

From the net proceeds, the company aims to utilise ₹630 crore for funding capital expenditure requirement for investment in its subsidiary, Pace Renewable Energies, and for setting up battery energy storage systems (BESS) for a project awarded by the Maharashtra State Electricity Distribution Company. The remaining funds will be used for general corporate purposes.  

MUFG Intime India is the registrar of the issue. Unistone Capital is appointed as the sole book-running lead manager. 

About the company

Incorporated in March 2007, Pace Digitek is a multi-disciplinary solutions provider with a significant focus on the telecom passive infrastructure industry. It offers comprehensive turnkey solutions and has established a pan-India operational presence along with operations in Myanmar and Africa. The company started operations as a passive electrical equipment product manufacturer and over the years it has expanded passive infra operations to comprise products, projects, operations & maintenance (O&M), and services and solutions.

 

For the six-month period ended September 30, 2024, the company reported a revenue from operations of ₹1,188.35 crore and profit after tax (PAT) of ₹152 crore. In FY24, the company reported revenue from operations of ₹2,434.48 crore, up from ₹503 crore in FY23. The company’s profit after tax (PAT) increased to ₹229.87 crore in FY24 from ₹16.5 crore in FY23.