The initial public offering of Pace Digitek is set to open for public bidding today, September 26. The Rs 819-crore IPO of the Bengaluru-based telecom infrastructure solutions provider will remain open till September 30.
The maiden public issue of the company entirely comprises a fresh issue of 3.74 crore shares.
Pace Digitek IPO GMP:
Ahead of listing, the unlisted shares of the company were trading with nearly 15 percent grey market premium (GMP) over the IPO price, according to data on Investorgain. This is higher than the 10.5 percent GMP quoted by the site earlier this week.
According to IPO Watch, the unlisted shares of the company were trading with nearly 11percent GMP over the issue price.
Pace Digitek IPO: Key things to know
Pace Digitek launched its IPO to raise Rs 819 crore through a fresh issue of 3.74 crore shares at a price band of Rs 208-219 per share. The public issue will remain open for public subscription between September 26 and September 30.
Investors can bid for a minimum of 68 shares, requiring an investment of Rs 14,892, and in multiples thereafter. The allotments will likely be finalized by October 1, and the shares are scheduled to be listed on stock exchanges on October 6.
Around Rs 630 crore from the fresh issue proceeds will be used to fund capital expenditure requirements, and a portion will be allocated towards general corporate purposes. 50 percent of the IPO has been reserved for qualified institutional buyers (QIBs), 35 percent for retail investors, and the remaining 15 percent for non-institutional investors.
Unistone Capital is the sole book-running lead manager of the issue.
Pace Digitek IPO Anchor Book:
A day before the IPO opened for public bidding, Pace Digitek announced that it has raised Rs 245.14 crore via anchor book on September 25. Societe Generale, Bandhan Mutual Fund, Samsung India, Taurus Mutual Fund, Saint Capital Fund, SBI General Insurance, Holani Venture Capital, Sunrise Investment Trust and Aarth AIF were among the 15 institutional investors participated in the anchor book.
Should you apply?
Choice Broking advised investors to subscribe to the issue. "At the upper end of its price band, the company is valued at a P/E of 16.9x (FY25 EPC of Rs 12.9) and EV/Sales of 1.6x, which is at a discount to peers. A robust order book ensures steady revenue visibility, while its integrated business model drives cost efficiency and quality control. Supported by strong sector tailwinds in renewable energy and geographic diversification," it noted.
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