Pace Digitek IPO – ₹900 Crore Fresh Issue Targeting Telecom and Energy Growth
Pace Digitek IPO – ₹900 Crore Fresh Issue Targeting Telecom and Energy Growth
Pace Digitek is heading to the market with a fresh issue IPO worth up to ₹900 crore. This is a Bengaluru-based company known for telecom passive infrastructure and energy solutions, and the scale of its growth in the past year has been unusually sharp. The offering is a 100% fresh issue with no offer-for-sale component, meaning all proceeds will go to the company for expansion and working capital.
The IPO may be reduced if the company executes a pre-IPO placement of up to ₹180 crore. That’s optional, but if it happens, the public offer size will drop accordingly.
The company’s numbers between FY 2023 and FY 2024 show a big jump. Revenue from operations went from ₹503.20 crore to ₹2,434.48 crore — an increase of 383.81%. Profit after tax (PAT) grew even more aggressively, from ₹16.53 crore to ₹229.87 crore, a 1,290.38% rise.
For the first half of FY 2025 (up to 30 September 2024), the company recorded ₹1,188.35 crore in revenue and ₹152.04 crore PAT. These figures suggest that momentum has continued post-FY24, not just a one-year spike.
Fresh issue size: ₹900 crore (face value ₹2 per share)
Pre-IPO placement: Optional, up to ₹180 crore
Allocation rules:
Up to 50% for Qualified Institutional Buyers (QIBs)
Minimum 15% for Non-Institutional Investors (NIIs)
Minimum 35% for Retail Investors
This is a standard book-building process IPO with clearly defined investor categories. The higher retail allocation means individual investors will have a reasonable share of the offer.
The biggest chunk — ₹630 crore — is earmarked for capital expenditure, mainly in Battery Energy Storage Systems (BESS). These investments will be executed via a subsidiary for projects awarded by MSEDCL (Maharashtra State Electricity Distribution Co. Ltd.).
The BESS project includes a 750 MW / 1,500 MWh system, aimed at grid-scale energy storage to support renewable energy integration and peak load balancing. The rest of the proceeds will go toward general corporate purposes.
Pace Digitek was founded in 2007 with a focus on telecom passive infrastructure. That means components like telecom towers, optical fibre cables, and passive electrical equipment. Over the years, the company has expanded into:
Turnkey projects
Operations & Maintenance (O&M) services
ICT (Information & Communication Technology)
Energy solutions
A major milestone was the 2014 acquisition of GE Power Electronics India and the “Lineage Power” brand, which expanded its manufacturing capabilities for telecom tower energy systems.
Today, the company operates not only across India but also in Myanmar and Africa, serving both telecom and energy infrastructure sectors.
Telecom Infrastructure Market:
FY 2020–2024 size: ₹1.6–1.7 lakh crore
Projected by FY 2028: ₹2–2.1 lakh crore
Optical Fibre EPC Market:
FY 2024 size: ₹8.4 lakh crore
Projected by FY 2028: ₹13.5–14 lakh crore
CAGR: 12.5–13.5%
The drivers are clear: more data consumption, 5G rollout, network densification, and energy infrastructure upgrades. The BESS push fits into the growing focus on renewable energy integration.
While direct peers are not named in the DRHP, similar players in telecom infrastructure include Indus Towers, Sterlite Technologies, and HFCL. In the BESS and energy solutions space, competition is more fragmented, with a mix of global and domestic players.
What gives Pace Digitek a differentiator is its dual presence in telecom and energy solutions. The ability to deliver both telecom network infrastructure and large-scale energy storage could help the company tap into multiple high-growth verticals simultaneously.
High growth in revenue and profit in the last financial year.
Diversified operations across telecom, energy, and ICT.
Presence in multiple geographies beyond India.
BESS focus at a time when India is increasing renewable energy capacity.
Volatility in telecom capex cycles. If operators slow spending, infrastructure demand could dip.
BESS execution risk. Large-scale projects require technical expertise and regulatory coordination.
High growth from a low base. FY23 numbers were modest, so percentage growth looks big — sustainability needs to be monitored.
Foreign operations exposure. Myanmar and Africa operations come with political and currency risks.
The company is aligning itself with two growing markets — telecom infrastructure and renewable energy storage. In telecom, India’s demand for better network coverage and 5G speed means continuous investment in towers, fibre, and supporting systems. In energy, large-scale battery storage is critical for integrating solar and wind into the grid without stability issues.
Investors will need to watch whether the high FY24 growth is sustainable and if the company can deliver on the large BESS contracts. But the allocation strategy and growth sectors suggest strong institutional and retail interest.