IPO Details
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Schedule of Pace Digitek IPO
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End date
Allotment of bids
Refund Initiation
Listing on exchange
About Pace Digitek IPO
Pace Digitek Limited is launching an IPO with a Fresh Issue of equity shares of face value ₹2 each, aggregating up to ₹900 crore. There is no Offer for Sale component, meaning the IPO is solely a Fresh Issue. The IPO opens on TBA and closes on TBA. The credit of shares will take place on TBA. The basis of allotment will take place on TBA and the initiation of refunds will take place on TBA.
Objectives of Pace Digitek IPO
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Funding capital expenditure requirements for investment in company’s subsidiary, Pace Renewable Energies Private Limited, for setting up battery energy storage systems (BESS) for a project awarded by the Maharashtra State Electricity Distribution Company Limited (MSEDCL)
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General corporate purposes
Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net issue |
Non-institutional Investors (NIIs) | Not less than 15% of the net issue |
Retail-individual Investors (RIIs) | Not less than 35% of the net issue |
Industry Outlook
The Indian telecom industry continues to show robust growth and remains a backbone for a wide range of sectors such as e-commerce, IT, finance, and healthcare. With the rapid adoption of cutting-edge technologies, telecom services have seen expanded coverage and become an essential part of everyday life, especially highlighted during the Covid-19 pandemic. The market is predominantly wireless, with wireless services constituting 97.2% of the total customer base as of Fiscal 2024, while wireline services account for only 2.8%. This dominance underscores the industry's dynamic evolution and its critical role in driving India's economic progress and digital connectivity.
Company Information
Pace Digitek Limited is a multi-disciplinary solutions provider with a strong focus on telecom passive infrastructure (Passive Infra). The company offers comprehensive turnkey solutions and maintains a pan-India presence, with additional operations in Myanmar and Africa. Over time, it has expanded from manufacturing passive electrical equipment to providing products, projects, operations and maintenance (O&M), and related services. With the acquisition of the GE Power Electronics India business and the “Lineage Power” brand in 2014, Pace Digitek began end-to-end manufacturing for telecom towers and, since 2023, has further integrated its supply chain, including solarization projects and lithium-ion battery solutions.
Strengths of Pace Digitek IPO
End-to-end solutions in telecom passive infrastructure
Pace Digitek Limited stands out as a comprehensive service provider in the telecom tower sector, offering integrated solutions from the manufacturing and supply of power management systems to project execution via EPC contracts, and long-term O&M services. The company’s broad capabilities allow it to address varied customer needs efficiently, making it a preferred partner for telecom operators and tower companies seeking reliability, technological expertise, and operational synergies under one roof.
Diversified business verticals with strong order book
The company has successfully diversified its business model, expanding from passive electrical equipment manufacturing to include products, projects, O&M, and AMC services across telecom, energy, and ICT segments. Its robust order book, which spans customers in India, Myanmar, and Africa, showcases the company’s resilience and sustained demand for its solutions. This diversification protects Pace Digitek against sectoral downturns and ensures consistent revenue streams from a broad, multi-sector clientele.
Focus on Innovation and Sustainable Power Solutions
Pace Digitek has consistently evolved by adopting intelligent and sustainable power solutions, such as solar power integration and lithium-ion battery adoption. By focusing on advanced technologies and eco-friendly infrastructure, the company addresses both industry trends and the evolving needs of its clients. This forward-thinking approach not only enhances operational efficiency for customers but also positions Pace Digitek as a leader in driving the transition towards greener, more reliable telecom power solutions.
Risks of Pace Digitek IPO
- Dependence on a few major customers
Pace Digitek Limited significantly relies on revenue from a small group of key customers. For Fiscal 2024, its top 5 customers contributed 83.37% of total revenue. This concentration exposes the company to considerable risk-any loss or reduction in orders from these customers, due to contract non-renewal, financial instability, or changes in procurement policies, could materially and adversely affect the company's business, profitability, and cash flows.
- Heavy reliance on government and public sector orders
A significant portion of Pace Digitek’s orders are from government entities and public sector undertakings, which are awarded through competitive bidding processes. These contracts are often lengthy and subject to project delays or cancellations due to changes in government priorities or budget allocations. Such dependencies make revenue highly unpredictable and susceptible to regulatory or political changes, potentially resulting in losses or delayed payments that could negatively impact the company’s financial health and operations.
- Short-term nature of contracts
Many of the company’s contracts with top customers are relatively short-term, typically ranging from one to three years, including annual renewals. This short duration creates uncertainty regarding future business continuity, as contracts may not be renewed or could be terminated prematurely. Failure to consistently renew or secure long-term contracts with major customers could disrupt revenue streams, limit growth visibility, and adversely affect Pace Digitek’s operational stability and overall financial performance.
Pace Digitek Financials
Peer comparison
| Name of the Company | Revenue from operations (₹ in Crores) | Basic EPS (₹) | P/E | NAV per Equity Share (₹) |
|---|---|---|---|---|
Pace Digitek Limited | 2,434.48 | 14.63 | - | 35.97 |
HFCL Limited | 4,465.05 | 2.33 | 34.86 | 27.95 |
Exicom Tele-Systems Limited | 1,019.59 | 6.70 | 21.88 | 75.65 |
Bondada Engineering Limited | 800.72 | 23.14 | 16.37 | 83.98 |
Registrar: MUFG Intime India Private Limited
Book Running Lead Manager: Unistone Capital Private Limited
Business Model
Pace Digitek Limited provides a wide range of telecom infrastructure solutions, including the manufacturing and supply of power management systems, executing turnkey projects, and offering operations and maintenance (O&M) services. The company earns revenue primarily through contracts with telecom operators and tower companies across India and international markets. With a focus on both products and long-term service agreements, Pace Digitek generates consistent income from innovative and integrated offerings in the telecom and energy sectors.
Company Growth Trajectory
Pace Digitek Limited's revenue from operations surged from ₹405.69 crore in FY22 to ₹2,434.48 crore in FY24, reflecting a remarkable growth rate of 383.81% in the most recent year. Similarly, EBITDA jumped significantly from ₹36.71 crore in FY22 to ₹423.74 crore in FY24. The company's EBITDA margin improved to 17.41% in FY24, up from just 9.05% in FY22, indicating enhanced operating efficiency. This extraordinary growth highlights the company's strong business momentum and improved profitability over the last two years.
Pace Digitek IPO Profit and Loss
| Parameter (in ₹ crore) | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income | 2,460.26 | 514.65 | 413.94 |
Profit Before Tax | 306.74 | 22.13 | 15.77 |
Profit After Tax | 229.87 | 16.53 | 11.50 |
EPS (Basic) | 14.63 | 0.95 | 0.73 |
EBITDA | 423.74 | 39.74 | 36.71 |
Pace Digitek IPO Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (₹ crores) | 306.74 | 22.13 | 15.77 |
Net Cash from Operating Activities (₹ crores) | 213.95 | (43.78) | 57.39 |
Net Cash from Investing Activities (₹ crores) | (317.77) | (54.76) | (22.49) |
Net Cash from Financing Activities (₹ crores) | 189.30 | 47.21 | 13.12 |
Net Cash and Cash Equivalents (₹ crores) | 85.48 | (51.33) | 48.02 |
How to Check Allotment Status of Pace Digitek IPO?
Visit the Registrar's Website
To check the IPO allotment status for Pace Digitek Limited IPO, visit the official website of MUFG Intime India Private Limited, the registrar for this IPO. On their IPO allotment status page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then, click the ‘Submit’ button to view your allotment status. Ensure you have the necessary details ready for a quick and accurate check.
Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page.
On the BSE IPO page, follow these steps:
- Select 'Equity' from the dropdown menu
- Choose 'Pace Digitek Limited' in the next dropdown
- Enter your application number
- Enter your PAN
- Click 'Search' Your Pace Digitek IPO allotment status will be displayed.
Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check Pace Digitek Ltd IPO allotment status.
Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.
On the NSE IPO Bid Verification page, enter:
- Application number
- PAN Then click 'Submit'. Your Pace Digitek IPO bid and allotment details will be displayed.
How to Apply for Pace Digitek IPO?
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Pace Digitek IPO FAQs
Where can I read more about Pace Digitek business?
You can read more about Pace Digitek and its IPO from the company’s red herring prospectus (RHP) here.
What is the Pace Digitek IPO?
Pace Digitek Limited is launching an IPO of up to ₹900 crore (Fresh Issue only) with equity shares of face value ₹2 each. There is no Offer for Sale component.
Is Pace Digitek IPO coming?
Yes, Pace Digitek Ltd is expected to come up with its IPO soon.
Who is the Chairman of Pace Digitek IPO?
Maddisetty Venugopal Rao is the Chairman of Pace Digitek Ltd
What is the lot size of shares of Pace Digitek IPO?
The company hasn’t given any information on the lot size yet.
