Pace Digitek Gears Up for Landmark Rs 819 Crore IPO: All You Need to Know

Get ready for a significant event in the Indian primary market! Pace Digitek Infra Pvt Ltd, a prominent player in the rapidly expanding telecom infrastructure sector, is poised to launch its initial public offering (IPO) worth a substantial Rs 819 crore. This eagerly anticipated offering is set to open its doors to investors on September 26 and will conclude on September 29, 2024, presenting a prime opportunity for those looking to invest in the backbone of our digital future.

The company has set the IPO price band at an attractive Rs 942 to Rs 998 per equity share, with a minimum bid lot size of 15 shares.

This structure allows a broad range of investors to participate in Pace Digitek's growth story. The issue is a combination of both a fresh issuance of shares and an Offer for Sale (OFS) by its esteemed promoters.

A fresh issue component of Rs 414 crore aims to bolster the company's financial capabilities.

A significant portion of these proceeds will be strategically deployed to fund the working capital requirements, essential for sustaining and expanding its operations. The remaining funds will be allocated towards general corporate purposes, providing the company with the flexibility needed to navigate future growth avenues and strategic initiatives.

Adding to the offering, the promoters—Jagdish Prasad Singh, Sandeep Kumar Singh, and Ankit Singh—are collectively offloading shares worth Rs 405 crore through an Offer for Sale.

This move allows existing shareholders to divest a portion of their holdings while still retaining a substantial stake in the company's future success.

Pace Digitek Infra Pvt Ltd stands as a crucial enabler of digital connectivity in India. The company specializes in providing comprehensive passive telecom infrastructure solutions, playing a vital role in building and maintaining the networks that power our mobile communications and internet services.

Their expertise spans across project management, seamless installation and commissioning of infrastructure, and ongoing operations and maintenance (O&M) services, particularly for wireless telecommunication systems.

The company's financial trajectory paints a picture of robust growth and operational efficiency.

Over the past three financial years, Pace Digitek has demonstrated impressive revenue and profit expansion. Its revenue from operations surged from Rs 818.15 crore in the fiscal year 2021 to a remarkable Rs 1,540.09 crore by fiscal year 2023. Concurrently, the profit after tax (PAT) saw an equally compelling rise, escalating from Rs 54.49 crore to an impressive Rs 123.01 crore during the same period.

This consistent upward trend underscores the company's strong market position and its ability to capitalize on the burgeoning demand for telecom infrastructure.

Guiding this significant market event are the experienced book-running lead managers, Nuvama Wealth Management and IIFL Securities. Link Intime India Private Ltd has been appointed as the official registrar to the issue, ensuring a smooth and efficient application process for investors.

Upon successful completion, the equity shares of Pace Digitek Infra Pvt Ltd are slated for listing on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), providing liquidity and visibility to its shares.

As India continues its digital transformation journey, companies like Pace Digitek are at the forefront, laying the groundwork for a more connected future.

This IPO offers investors a chance to become a part of this essential sector's growth, backed by a company with a proven track record and a clear vision for the future.