Pace Digitek Limited announced on December 31 that its material subsidiary, Lineage Power Private Limited, has secured an advance purchase order worth ₹94.35 crores from Bharat Sanchar Nigram Limited (BSNL). The announcement was made in compliance with Regulation 30 of SEBI Listing Obligations and Disclosure Requirements.

Contract Details and Scope

The comprehensive order from BSNL encompasses multiple components for telecom infrastructure enhancement under domestic procurement. The contract includes supply and maintenance of advanced Li-ion battery systems designed for telecommunications applications.

Technical Specifications and Infrastructure

The order specifically calls for Basic 100 AH/48V Li-ion Battery Modules equipped with Battery Management Systems (BMS) and associated accessories required for complete battery sets. The IP55 racks are designed to house eight 48V/100AH modules each, complete with associated accessories including 10-metre RJ45 cables to connect Master BMS and SMPS PP-CSU systems.

Contract Terms and Execution Timeline

The domestic contract carries a total value of ₹94.35 crores including GST, with execution scheduled within 5 months from receipt of the purchase order. The agreement also includes a comprehensive 5-year Annual Maintenance Contract (AMC) following the initial 5-year warranty period for all 25,000 Li-ion battery modules.

Regulatory Compliance and Corporate Structure

The company confirmed that this contract does not involve any related party transactions and operates at arm's length. Neither the promoter, promoter group, nor group companies have any interest in BSNL. Lineage Power Private Limited, being a material subsidiary of Pace Digitek Limited, secured this order through competitive bidding processes.

Market Performance and Strategic Impact

This substantial order from India's largest telecommunications service provider represents a significant milestone for Pace Digitek's subsidiary in the government telecommunications sector. The contract encompasses not just equipment supply but also long-term service commitments, ensuring sustained revenue streams over the next decade through warranty and AMC provisions. Pace Digitek shares were trading higher at ₹188.50 as of December 31, reflecting positive market sentiment following the order announcement.

Pace Digitek has officially incorporated a new wholly-owned subsidiary, marking a significant strategic expansion for the telecom equipment and infrastructure services company. The newly incorporated entity, named Lineage Defence And Aerospace, represents the company's formal entry into the defence and aerospace sector.

Strategic Business Expansion

The incorporation of Lineage Defence And Aerospace demonstrates Pace Digitek's commitment to diversifying its business operations and exploring new market opportunities. This subsidiary structure will allow the company to operate in the defence and aerospace domain while maintaining its core telecom equipment and infrastructure services business.

Corporate Structure Development

The establishment of this wholly-owned subsidiary provides Pace Digitek with a dedicated platform to pursue opportunities in the defence and aerospace sector. This corporate structure enables focused operations and specialized expertise development in the new business vertical.

Market Positioning

With this new subsidiary, Pace Digitek is positioning itself to capitalize on opportunities in India's growing defence and aerospace market. The company's existing expertise in technology and infrastructure services may provide a foundation for operations in these specialized sectors.

The incorporation of Lineage Defence And Aerospace represents a notable corporate development for Pace Digitek as it expands beyond its traditional telecom equipment and infrastructure services business into new strategic sectors.