Synopsis:
Pace Digitek’s IPO will be open from September 26 to 30th September, 2025, and aims to raise Rs. 819.15 cr with a price band of Rs. 208 to Rs. 219. Strong financials, diversified operations, and robust promoter backing highlight its competitive edge and growth potential.
Pace Digitek IPO Key Details
Pace Digitek’s IPO is open for subscription from September 26 to September 30, 2025, and will be listed on BSE and NSE. The book-built issue offers fresh capital of 3.74 cr shares, aggregating up to Rs. 819.15 cr, with a face value of Rs. 2 per share and an issue price band of Rs. 208 to Rs. 219. The lot size is 68 shares, with an employee discount of Rs. 20 per share.
IPO Timeline
Pace Digitek’s IPO opens on September 26, 2025, and closes on September 30, 2025, with the UPI mandate confirmation cut-off at 5 PM on the closing day. Tentative allotment is scheduled for October 1, 2025, followed by refunds and credits of shares to demat accounts on October 3, 2025. The IPO is expected to list on BSE and NSE on October 6, 2025.
Pace Digitek IPO Lot Size
For the Pace Digitek IPO, investors can bid for a minimum of 68 shares and in multiples of 68. Retail investors can apply for 1 to 13 lots, amounting from 68 to 884 shares valued between Rs. 14,892 and Rs. 1,93,596.
Small HNIs (S-HNI) can bid for 14 to 67 lots (952 to 4,556 shares) worth Rs. 2,08,488 to Rs. 9,97,764, while Big HNIs (B-HNI) can apply for a minimum of 68 lots, totalling 4,624 shares valued at Rs. 10,12,656.
Pace Digitek IPO Promoter Holding
The promoters of Pace Digitek are Maddisetty Venugopal Rao, Padma Venugopal Maddisetty, Rajiv Maddisetty, and Lahari Maddisetty, who hold 84.07% of the company’s shares before the IPO. Post-issue, their shareholding will decrease to 69.50%.
GMP of the IPO
As of September 24, 2025, the last Grey Market Premium (GMP) for Pace Digitek IPO was Rs. 18. With a price band of Rs. 219, the estimated listing price is Rs. 237, indicating a potential gain of approximately 8.22% per share.
Objectives of the IPO
The net proceeds from the Pace Digitek IPO are proposed to be utilised primarily for funding the company’s capital expenditure requirements amounting to Rs. 630 cr, with the balance earmarked for general corporate purposes to support its overall business operations and growth initiatives.
Financials
Pace Digitek Ltd’s financials show steady growth, with PAT rising 21% to Rs. 279.10 crore in FY25 from Rs. 229.87 crore in FY24, even though revenue remained almost flat at around Rs. 2,462 crore. The company’s assets increased to Rs. 2,648.96 crore from Rs. 2,253.87 crore, while EBITDA grew to Rs. 505.13 crore from Rs. 423.75 crore, reflecting improved operating efficiency.
Net worth more than doubled to Rs. 1,080.33 crore, supported by higher reserves and surplus, while total borrowings fell sharply to Rs. 160.70 crore from Rs. 493.19 crore, indicating stronger financial stability.
Competitive Strengths of the company
- Comprehensive end-to-end solutions with fully integrated operations in the telecom tower sector.
- Well-diversified business segments backed by a robust order book.
- Skilled and experienced leadership team.
- State-of-the-art manufacturing facilities ensure high production efficiency.
- Consistent track record of strong financial and operational performance with sustained profitability.
Risks of the company
- Our business is highly dependent on a limited set of customers, with the top 10 clients contributing 96.25% in FY25, 99.45% in FY24, and 92.16% in FY23 to operational revenue. Sustaining strong relationships with these customers is critical, and the loss of any major client or revenue stream from them could materially impact our business, financial health, results of operations, and cash flows.
- A substantial portion of our revenue comes from government-linked entities, which allocate projects through a tendering process. Revenue from public sector clients accounted for 96.17% in FY25, 92.08% in FY24, and 34.14% in FY23. Since contracts are generally awarded to the lowest bidder, our margins and performance could be negatively affected if we fail to secure bids or are forced to bid at lower values.
- Although diversified, our operations are significantly tied to demand from end-use industries, particularly the telecom sector. Revenue from this sector constituted 94.22% in FY25, 95.40% in FY24, and 81.92% in FY23. Any slowdown in telecom or other key industries could adversely affect our business and financial performance.
About the company
Pace Digitek Ltd is an Indian infrastructure-tech company focused on telecom and power solutions. It designs, manufactures, installs and maintains power management systems, solar/energy solutions, optical fibre networks, and telecom infrastructure. It also manufactures and supplies lithium-ion battery systems, used for energy storage in telecom towers. It operates with a presence not only in India but also in other countries (e.g. Africa, Sri Lanka, Bangladesh) and has built capabilities in operations & maintenance of sites.
Written by Manideep Appana
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