Pace Digitek IPO is a significant book-built issue, with the company aiming to raise a total of ₹819.15 crore through a fresh issue of 3.74 crore shares. This initial public offering, or IPO, is a key event for the telecom infrastructure sector, as it allows retail investors and institutional buyers to invest in a company with a strong track record and diversified business operations. The IPO is scheduled to open for subscription on September 26, 2025, and will close on September 30, 2025. The shares are expected to be listed on both the BSE and NSE on October 6, 2025. The price band has been set at ₹208 to ₹219 per share, with a face value of ₹2 per share.
Table of Contents
- About Pace Digitek Ltd.
- Key IPO Details
- Financial Performance and Valuations
- Promoter Holding and IPO Objectives
- Conclusion
- FAQs
Founded in 2007, Pace Digitek has established itself as a multi-disciplinary solutions provider in the telecom, energy, and Information and Communications Technology (ICT) sector. The company has a strong focus on the telecom passive infrastructure industry, including the crucial areas of telecom towers and optical fibre cables (OFC).
The company's business operations are strategically divided into three key verticals that have contributed to its consistent growth and robust order book of ₹7,633.6 crore as of March 2025.
- Telecom: This vertical includes the manufacturing of passive telecom equipment, along with operations and maintenance (O&M) services for telecom towers and OFC networks.
- Energy: The company is a player in the renewable energy space, with projects like solarisation of telecom towers, rural electrification, and the manufacturing of lithium-ion battery systems for energy storage.
- Information and Communications Technology (ICT): Pace Digitek's ICT solutions include surveillance systems, smart classrooms, and smart kiosks for agricultural applications, showcasing a diversified business model beyond core telecom.
The IPO structure and pricing details are critical for potential investors to understand the investment requirements and offer structure. The minimum investment for a retail investor is ₹14,892, corresponding to a lot size of 68 shares at the upper price band.
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The reservation for different investor categories is set to ensure broad participation.
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These reservation percentages are standard for a book-built issue and ensure a balanced allocation across different investor groups. The IPO also includes a reservation for eligible employees, who can bid for shares up to ₹5 lakh at a potential discount of ₹20 per share.
Get all the latest updates on the Pace Digitek IPO, including subscription status, price band details, and allotment timelines.
Pace Digitek has demonstrated strong financial performance, with a steady increase in both revenue and profitability over the past three fiscal years. Its Profit After Tax (PAT) has shown remarkable growth, rising by 21% from ₹229.87 crore in FY24 to ₹279.10 crore in FY25. This growth, despite revenue remaining broadly flat at ₹2,462 crore, highlights the company's improved operational efficiency.
The company's valuation metrics also present an interesting picture for prospective investors.
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The company's low Debt/Equity ratio of 0.13 indicates a strong financial position with minimal leverage. A Return on Equity (ROE) of 23.09% suggests that the company is highly effective at generating profits from its shareholders' investments.
Additionally, the company’s strong financial metrics are further evidenced by a healthy EBITDA margin of 20.71%, showing strong operational profitability.
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The promoters, including Maddisetty Venugopal Rao and his family, currently hold an 84.07% stake in the company. Following the fresh issue, this holding will decrease to 69.50%. This dilution is a standard aspect of a fresh issue IPO and is not a cause for concern, as the funds raised are intended for crucial business expansion.
The primary objective of the IPO is to utilise the net proceeds to fund the company's capital expenditure requirements, with a significant amount of ₹630 crore allocated for this purpose. The remaining funds will be used for general corporate purposes. This capital will be crucial for the company's expansion into new projects, particularly the establishment of a battery energy storage system (BESS) project in Maharashtra, which will be a key growth driver.
There’s a focused video by Kotak Securities reviewing the Pace Digitek IPO, explaining the issue details and offering insights on whether investors should apply.
The Pace Digitek IPO presents a compelling opportunity, particularly for investors interested in the high-growth telecom and renewable energy sectors. The company's diversified business model, robust financial performance with strong profitability and low leverage, and a substantial order book are key strengths. The IPO proceeds are earmarked for strategic capital expenditure, which could further accelerate the company's growth and market presence.
Investors should also consider the potential risks, such as a heavy reliance on a small number of key customers and government/PSU orders. However, with a strong management team and a solid financial footing, Pace Digitek appears well-positioned to leverage the burgeoning demand for telecom infrastructure and energy solutions in India.
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Q1: What are the key dates for the Pace Digitek IPO?
The IPO is open for subscription from September 26, 2025, to September 30, 2025. The allotment is expected on October 1, 2025, and the tentative listing date is October 6, 2025.
Q2: What is the minimum and maximum investment for a retail investor?
A retail investor can apply for a minimum of 1 lot (68 shares) with an investment of ₹14,892 and a maximum of 13 lots (884 shares) with an investment of ₹1,93,596.
Q3: What will the company use the IPO proceeds for?
The company plans to use ₹630 crore of the proceeds for funding capital expenditure requirements, with the remaining amount going towards general corporate purposes.
Q4: How does Pace Digitek's financial performance look?
The company has shown strong profitability, with PAT increasing by 21% in FY25 to ₹279.10 crore. It also boasts a low debt-to-equity ratio of 0.13.
Q5: Who are the promoters of Pace Digitek Ltd.?
The promoters are Maddisetty Venugopal Rao, Padma Venugopal Maddisetty, Rajiv Maddisetty, and Lahari Maddisetty.
Q6: Where will the Pace Digitek IPO be listed?
The shares will be listed on both the BSE and NSE.