Upcoming IPO: Pace Digitek Filed DRHP With SEBI to Raise ₹900 Crore

Pace Digitek Limited has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) in preparation for an initial public offering (IPO) to raise ₹900 crore. Pace Digitek is a multidisciplinary solutions provider focused on the telecom passive infrastructure sector, including telecom tower infrastructure and optical fiber cables.

Pace Digitek IPO Details

The proposed upcoming IPO will consist of a fresh issue of equity shares with a face value of ₹2, totaling up to ₹900 crore. The company may also consider a pre-IPO placement of equity shares up to ₹180 crore. If the pre-placement is completed, the funds raised will be deducted from the fresh issue..The issue will be allocated as follows: up to 50% for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 35% for retail investors. The equity shares are intended to be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), according to the DRHP.

Use of Net Proceeds

The company plans to use the net proceeds to allocate ₹630 crore towards capital expenditure, including investments in its subsidiary, Pace Renewable Energies, and for the establishment of battery energy storage systems (BESS) for a project awarded by the Maharashtra State Electricity Distribution Company. The remaining funds will be utilized for general corporate purposes.

MUFG Intime India will serve as the registrar for the issue, while Unistone Capital has been appointed as the sole book-running lead manager.

About Digitek Limited

Founded in March 2007, Pace Digitek is a multi-disciplinary solutions provider with a strong presence in the telecom passive infrastructure sector. The company offers end-to-end turnkey solutions and operates across India, as well as in Myanmar and Africa. Initially a manufacturer of passive electrical equipment, the company has expanded its operations to include products, projects, operations and maintenance (O&M), and services.

For the six months ending September 30, 2024, Pace Digitek reported a revenue of ₹1,188.35 crore from operations, with a profit after tax (PAT) of ₹152 crore. In FY24, the company’s revenue from operations grew to ₹2,434.48 crore, up from ₹503 crore in FY23. Its PAT also saw a significant increase, rising to ₹229.87 crore in FY24 from ₹16.5 crore in FY23.

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