Telecom infra solution provider Pace Digitek to launch Rs 819-crore IPO on September 26

The company will finalise the IPO share allotment by October 1, while the trading in Pace Digitek shares will commence on the bourses with effect from October 6.

Bengaluru-based telecom infrastructure solution provider Pace Digitek has filed its Red Herring Prospectus with the Registrar of Companies on September 19 as it is set to hit Dalal Street with its IPO on September 26.

The initial public offering (IPO), which comprises of entirely fresh shares worth Rs 819.15 crore with no offer-for-sale component, will close on September 30. The one-day IPO anchor book will be launched on September 25.

The company will finalise the IPO share allotment by October 1, while the trading in Pace Digitek shares will commence on the bourses with effect from October 6.

Pace Digitek has reduced its offer size as it had filed draft papers with the SEBI on March 27 this year to raise Rs 900 crore via IPO. The market regulator has given its approval to the company's IPO plans in last week of August this year.

Pace Digitek plans to spend Rs 630 crore of the fresh issue proceeds for setting up battery energy storage systems (BESS) for a project awarded by the Maharashtra State Electricity Distribution Company (MSEDCL) through its subsidiary Pace Renewable Energies. And the remaining amount will be used for general corporate purposes.

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The company with a significant focus on the telecom infrastructure industry including telecom towers and optical fibre cables generates revenue from three verticals - telecommunications, energy, and information and communication technology (ICT). It has an order book of Rs 7,633.6 crore as of March 2025, of which nearly 98 percent from the public sector.

On the financial front, Pace Digitek that competes with three listed peers like HFCL, Exicom Tele-Systems, and Bondada Engineering has recorded profit in the year ended March 2025 at Rs 279.1 crore, growing 21.4 percent compared to Rs 229.9 crore in previous year. Revenue during the same period increased by 0.17 percent to Rs 2,438.8 crore, up from Rs 2,434.5 crore.

Promoter Maddisetty Venugopal Rao and his family hold 84.06 percent stake in Pace Digitek. Further, 9.36 percent shares are owned by public and the remainder 6.58 percent stake is held by non-promoter and non-public shareholders.

Unistone Capital is the sole merchant banker handling the Pace Digitek IPO.