Bengaluru-based Pace Digitek Limited, multi-disciplinary solutions provider specializing in telecom passive infrastructure industry, has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) to raise Rs 900 crore through Initial Public Offering (IPO).

The IPO, with a face value of Rs 2, is a fresh issue of shares up to Rs 900 crore.

The company, in consultation with the BRLMS, may consider a further issue of specified securities, including through private placement, preferential allotment, rights issue, or any other method aggregating up to ₹180 crore as pre-IPO placement. If the pre-IPO placement is completed, the amount raised under the pre-IPO placement will be reduced from the fresh issue.

The proceeds from the fresh issue to the extent of Rs 630 crore for Funding Capital Expenditure requirement and general corporate purposes.

The Issue is being made through the book-building process, wherein not more than 50% of the Issue is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is assigned to non-institutional Investors and retail individual bidders respectively.

Incorporated in the year 2007, Pace Digitek Limited is multi-disciplinary solutions provider specializing in telecom passive infrastructure industry including telecom tower infrastructure and optical fibre cables. The company has commenced operations as a passive electrical equipment product manufacturer, and over the years had expanded Passive Infra operations to comprise products, projects, operations & maintenance and services and solutions. It offers comprehensive turnkey solutions and has established pan-India operational presence along with operations in Myanmar and Africa. In fiscal 2014, with the acquisition business of GE Power Electronics India and rights over the ‘Lineage Power’ brand, has commenced ‘end to end’ manufacturing of direct current systems, which are tailored for telecom tower companies and operators and helped enhancing market position in the energy management solutions. Through the Subsidiary Lineage Power Private Limited (Lineage) company undertakes projects, which has backward integrated supply of Passive Infra products. Also, been undertaking projects for solarization of telecom towers.

Over the years, Company has transitioned from a manufacturer of passive equipment for the telecom industry to a multi-disciplinary solutions provider. Company’s business broadly classified into verticals like Telecom, Energy and Information, communications and technology (ICT) sector. Business verticals of the company include Products, Services and Projects, product segment consists of Telecom Power Equipment and Lithium-Ion Battery Rack, Services consists of Product Life Cycle Management, Telecom Operations and Maintenance and Product I&C and Equipment Upgradation And under project segment it consists of Telecom (Tower & Fiber), Solar, ICT and Transmission, Distribution and Sl.

Pace Digitek Limited’s revenue from operations has increased by 383.81% from ₹ 503.20 crore in Fiscal 2023 to ₹ 2434.48 crore in Fiscal 2024. Profit after tax grew by 1290.38%, from ₹16.53 crore in Fiscal 2023 to ₹ 229.87 crore in Fiscal 2024.

For the six months ended September 30, 2024, revenue from operations stood at ₹ 1188.35 crore and Profit after tax stood at ₹ 152.04 crore.

As per CRISIL Report, Passive Telecom Infrastructure market size in India is estimated at ₹ 1.6 lakh crore – 1.7 lakh crore (cumulative) Between Fiscals 2020-2024 and is projected to increase moving forward to ~₹ 2 lakh crore -2.1 lakh crore between fiscal 2023- 2028. Additionally, the optical fibre EPC industry which was estimated at ~ ₹ 8.4 lakh crore as of Fiscal 2024, is expected to grow to ₹ 13.5-14 lakh crore by Fiscal 2028, which is a CAGR of 12.5-13.5%.

Unistone Capital Private Limited is the sole book-running lead manager and MUFG Intime India Private Limited is the registrar of the issue. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.

Source: Konexio Network