Pace Digitek's ₹819 crore IPO opened on September 26 and will remain open for investment until September 30. With a lot size of 68 shares in the price band of ₹208-219, the IPO aims to raise funds for capital expenditure and general corporate purposes by issuing new shares. Shares are trading at a 14.61% premium in the grey market.
Pace Digitek IPO: Pace Digitek Limited's public issue of ₹819.15 crore opened on September 26, involving the issuance of 3.74 crore new shares. The company provides product manufacturing and services to the telecom, energy, and ICT sectors. The IPO's reserved portion is allocated as 50% for Qualified Institutional Buyers, 35% for retail investors, and 15% for non-institutional investors. Allotment will take place on October 1, and shares will be listed on BSE and NSE on October 6.
Company's Business
The promoters of Pace Digitek are Maddisetty Venugopal Rao, Padma Venugopal Maddisetty, Rajiv Maddisetty, and Lahari Maddisetty. The company provides product manufacturing, operations, and maintenance services in the telecom sector. Furthermore, in the energy sector, it manufactures solar energy projects, rural electrification projects, and lithium-ion battery systems. The company's smart classroom and surveillance systems projects are also part of its ICT sector offerings.
IPO Details
Shares in the Pace Digitek IPO are available at a price band of ₹208 to ₹219 per share. Investors will receive a minimum lot of 68 shares. Allotment will be finalized on October 1, and shares are expected to be listed on BSE and NSE on October 6.
The reservation for this IPO is as follows: 50 percent for Qualified Institutional Buyers, 35 percent for retail investors, and 15 percent for non-institutional investors. Unistone Capital Private Limited is the Book Running Lead Manager for this IPO. MUFG InTime India Private Limited is the registrar for this issue.
Anchor Investor Contribution
Before the IPO opened, the company raised ₹245.14 crore from anchor investors. A total of 15 institutional investors were included among the anchor investors, namely Societe Generale, Bandhan Mutual Fund, Samsung India, Taurus Mutual Fund, Cent Capital Fund, SBI General Insurance, Holani Venture Capital, Sunrise Investment Trust, and Earth AIF.
Grey Market Premium
In the grey market, Pace Digitek's shares are trading at a premium of 14.61 percent or ₹32 above the IPO's upper price band of ₹219. The grey market is an unauthorized market where shares are traded before listing.
Utilization of IPO Proceeds
The funds raised from the IPO will be utilized by the company to meet its capital expenditure requirements and for general corporate purposes. In fiscal year 2025, Pace Digitek's net profit was ₹279.10 crore, compared to ₹229.87 crore in the previous year. Total income stood at ₹2462.20 crore, compared to ₹2460.27 crore in the previous year. During fiscal year 2025, the company had a debt of ₹160.70 crore.
Financial Performance
Pace Digitek has demonstrated b financial performance. The company recorded a 21 percent increase in its profit last year. It is ensuring stable revenue through continuous new projects and services in the telecom and energy sectors. The company's integrated business model helps reduce production costs and enhance quality control.
Before investing in the IPO, investors can consider the company's b order book and diversified business model. The company's projects in sectors such as renewable energy and geographic diversification further strengthen its position.
