Pace Digitek, a multi-disciplinary solutions provider in the telecom, energy, and ICT segments, has set the stage for its Initial Public Offering (IPO) with a price band of Rs 208-219 per share. The Rs 819 crore offering is scheduled to open on September 26 and close on September 30, marking a significant milestone for the company.

IPO Details

The IPO consists entirely of a fresh issue of 3.74 crore equity shares. Investors can bid for a minimum of 68 shares, with the retail application size set at Rs 14,892 at the upper price band.

Utilization of Funds

Pace Digitek has outlined its plans for the IPO proceeds:

• Rs 630 crore will be allocated for capital expenditure
• The remaining amount will be used for general corporate purposes

Company Overview

Pace Digitek operates as a multi-disciplinary solutions provider across various sectors:

• Telecom
• Energy
• Information and Communication Technology (ICT)

The company's service portfolio includes:

• Passive equipment manufacturing
• Tower operations
• Solar solutions
• Surveillance systems

Pace Digitek currently operates manufacturing facilities in Bengaluru.

Financial Performance

Pace Digitek reported the following financial results:

The company's profit after tax saw a notable 21% rise, indicating strong financial growth.

As Pace Digitek prepares to enter the public market, investors will be closely watching this IPO, given the company's diverse portfolio and robust financial performance in the rapidly evolving telecom and technology sectors.

Bengaluru-based telecom solutions provider Pace Digitek has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO). The company's draft red herring prospectus, which outlines plans to raise ₹900 crore through the IPO, has been approved by the market regulator.

Capital Allocation

The majority of the funds raised through the IPO are earmarked for a significant expansion in the energy storage sector:

• ₹630.00 crore: Allocated for capital expenditure to establish Battery Energy Storage Systems (BESS)
• This project will be executed through Pace Digitek's subsidiary, Pace Renewable Energies Private Limited
• The BESS project has been awarded by Maharashtra State Electricity Distribution Company Limited (MSEDCL)

The remaining funds from the IPO will be directed towards general corporate purposes, providing the company with financial flexibility for future growth initiatives.

Strategic Alignment with Renewable Energy

Pace Digitek's move into battery energy storage aligns with its broader strategy of capitalizing on India's push towards renewable energy:

• Since 2013, the company has been actively involved in transitioning telecom towers to solar power
• This shift demonstrates Pace Digitek's commitment to sustainable energy solutions in the telecom infrastructure sector

Business Expansion

While Pace Digitek's primary operations are centered in India, the company has been expanding its footprint internationally:

• Expanded presence in Africa, Myanmar, Bangladesh, Sri Lanka, and the Philippines
• Offers energy management solutions tailored for telecom infrastructure in these markets

Company Profile

Pace Digitek has positioned itself as a key player in the telecom solutions space:

• Specializes in providing energy management solutions for telecom infrastructure
• Adapting its business model to align with the growing demand for renewable energy solutions in the telecom sector

The approval of Pace Digitek's IPO by SEBI marks a significant milestone for the company, potentially providing it with the capital needed to expand its battery energy storage business and strengthen its position in the evolving energy management landscape for telecom infrastructure.