Pace Digitek Ltd has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO) worth ₹900 crore. The IPO comprises a fresh issue of equity shares, each with a face value of ₹2.
As per the DRHP, the company may explore an additional fundraising of up to ₹180 crore through methods such as private placement, preferential allotment, or rights issue as part of a pre-IPO placement. If executed, the fresh issue size will be adjusted accordingly.
Pace Digitek plans to utilize ₹630 crore from the fresh issue proceeds to finance capital expenditure and meet general corporate requirements.
The IPO will follow the book-building process, with allocations as follows: up to 50% for Qualified Institutional Buyers (QIBs), a minimum of 15% for Non-Institutional Investors (NIIs), and at least 35% for retail investors.
Founded in 2007, the Bengaluru-based company provides multi-disciplinary solutions in the telecom passive infrastructure sector, including telecom tower infrastructure and optical fiber cables.
The company has demonstrated significant financial growth, with revenue surging by 383.81% from ₹503.20 crore in FY23 to ₹2,434.48 crore in FY24. Meanwhile, its profit after tax (PAT) rose by 1,290.38%, from ₹16.53 crore to ₹229.87 crore during the same period.
For the six months ending September 30, 2024, Pace Digitek reported a revenue of ₹1,188.35 crore and a PAT of ₹152.04 crore.
According to a CRISIL report, India’s passive telecom infrastructure market was valued at approximately ₹1.6 lakh crore between 2020 and 2024 and is projected to grow to around ₹2 lakh crore during 2023-2028.
