Pace Digitek's Initial Public Offering (IPO) entered its second day of subscription, with investors showing moderate interest in the telecommunications and energy sector player. The company aims to raise Rs 819.00 crore through the issuance of 3.94 crore equity shares.

Subscription Status

On Day 2, the IPO witnessed an overall subscription of 16%, indicating a cautious start. The subscription details across different investor categories are as follows:

• Retail investors: 18% of allocated shares
• Institutional investors: 9% of allocated shares
• Qualified Institutional Buyers (QIBs): 17% of reserved shares

Grey Market Premium

The grey market premium for Pace Digitek shares has seen a significant decline:

• Current premium: 5.5% (Rs 12.00)
• Previous premium: 14%

This drop suggests a possible listing price of Rs 231.00, compared to the upper price band of Rs 219.00.

IPO Timeline

• Closing date: September 30
• Expected allotment date: October 1
• Scheduled listing date: October 6

Company Overview

Pace Digitek operates in the telecommunications, energy, and Information and Communications Technology (ICT) sectors. The company has shown substantial growth in recent years:

• Revenue growth: From Rs 405.00 crore to Rs 2,439.00 crore
• Net profit: Rs 279.00 crore
• Current order book: Rs 7,634.00 crore

Post-IPO Shareholding

The promoter shareholding in Pace Digitek is expected to decrease from 84.1% to 69.5% after the IPO.

Use of Proceeds

The company plans to utilize the IPO proceeds as follows:

• Rs 630.00 crore: Funding battery energy storage system deployment
• Remaining funds: General corporate purposes

Financial Table

Investors are advised to carefully consider the company's financials, growth prospects, and market conditions before making an investment decision. The moderate subscription levels and declining grey market premium suggest a cautious sentiment among investors towards this IPO.

Pace Digitek Ltd., a prominent telecom infrastructure solution provider, has successfully raised Rs 245.14 crore from anchor investors, setting the stage for its upcoming Initial Public Offering (IPO). The company allotted 1.12 crore shares at Rs 219 per share to 16 investors, demonstrating strong interest in its public offering.

Anchor Investment Highlights

Notable among the anchor investors, Compact Structure received the highest allocation at 15.09%, followed by Bandhan Small Cap Fund at 12.24%. This diverse range of institutional investors signals confidence in Pace Digitek's business model and growth prospects.

IPO Details

Pace Digitek is set to launch its IPO with the following key features:

Fund Utilization

The company plans to use the IPO proceeds strategically:

• Capital Expenditure: A significant portion of Rs 630 crore
• General Corporate Purposes: Remaining funds

Company Profile

Pace Digitek specializes in telecom passive infrastructure, with a focus on:

1. Tower infrastructure
2. Optical fiber cables

The company has established a strong presence across multiple Indian states and has expanded its operations internationally to Myanmar and Africa.

Industry Outlook

As a telecom infrastructure provider, Pace Digitek is positioned in a sector crucial for digital connectivity. The successful anchor investment and the upcoming IPO reflect the growing importance of telecom infrastructure in an increasingly connected world.

The enthusiastic response from anchor investors, including notable names like Compact Structure and Bandhan Small Cap Fund, suggests a positive outlook for Pace Digitek's public offering. As the IPO unfolds, it will be interesting to see how retail and institutional investors respond to this opportunity in the telecom infrastructure space.