Introduction
The Pace Digitek IPO is one of the most awaited public issues in 2025, attracting attention from both institutional and retail investors. With a total issue size of ₹819.15 crores, the IPO is entirely a fresh issue, reflecting the company’s ambition to raise capital for expansion while continuing to strengthen its foothold in the fast-evolving telecom infrastructure and renewable energy storage markets.
Founded in 2007, Pace Digitek has transformed into a multi-disciplinary solutions provider with a special focus on telecom infrastructure and the rapidly growing Battery Energy Storage Systems (BESS) space. The Pace Digitek IPO offers investors an opportunity to participate in a company that is aligned with India’s renewable energy targets and the expansion of next-gen telecom networks.
With two advanced manufacturing facilities in Bengaluru, an integrated product-service delivery model, and a strong order book worth nearly ₹7,976 crores, the Pace Digitek IPO represents both a growth opportunity and a play on India’s digital and green energy future.
IPO Overview – Pace Digitek IPO
Pace Digitek IPO Details
| Particulars | Details |
|---|---|
| IPO Date | September 26, 2025 – September 30, 2025 |
| Listing Date | October 6, 2025 (Tentative) |
| Face Value | ₹2 per share |
| Price Band | ₹208 – ₹219 per share |
| Lot Size | 68 shares |
| Total Issue Size | 3,74,04,018 shares (₹819.15 Cr) |
| Fresh Issue | Entire issue is fresh (₹819.15 Cr) |
| Employee Discount | ₹20 per share |
| Issue Type | Book Building IPO |
| Listing At | BSE, NSE |
| Pre-Issue Shareholding | 17,84,42,280 shares |
| Post-Issue Shareholding | 21,58,46,298 shares |
| IPO Document | RHP File |
The Pace Digitek IPO is structured as a pure fresh issue, which means the entire proceeds will flow directly into the company’s expansion and operational needs rather than an Offer for Sale. With a lot size of 68 shares, retail investors can participate with a minimum investment of ₹14,892, making it accessible for small investors as well.
Pace Digitek IPO Important Dates
| Event | Date |
|---|---|
| IPO Open Date | Friday, September 26, 2025 |
| IPO Close Date | Tuesday, September 30, 2025 |
| Allotment Date | Wednesday, October 1, 2025 |
| Initiation of Refunds | Friday, October 3, 2025 |
| Credit of Shares to Demat | Friday, October 3, 2025 |
| Listing Date | Monday, October 6, 2025 |
| Cut-off Time for UPI Mandate | 5:00 PM, September 30, 2025 |
The IPO schedule for Pace Digitek IPO is tightly structured, with the allotment expected within just one day after closing. This efficiency in timelines reflects the growing maturity of India’s capital markets.
Objects of the Issue
The company intends to utilise the net proceeds from the Pace Digitek IPO as follows:
- Funding Capital Expenditure requirements: ₹6,300 million allocated to expand manufacturing capacity, technology upgrades, and strengthening telecom & BESS verticals.
- General Corporate Purposes: Strengthening working capital, business growth, and other strategic requirements.
This allocation suggests that the Pace Digitek IPO is designed to fuel the company’s next phase of growth, particularly in high-demand areas like lithium-ion battery systems and integrated telecom services.
Company Background – Pace Digitek Ltd.
Incorporated in 2007, Pace Digitek Ltd. has grown from a niche player in telecom services to a leading integrated solutions provider with expertise across telecom infrastructure, services, and energy storage solutions.
The company’s telecom division focuses on manufacturing, installation, and commissioning of power management products for telecom towers, along with turnkey solutions such as tower erection, OFC laying, and long-term O&M services. This positions Pace Digitek as a critical partner in India’s push towards 5G network rollout and digital infrastructure expansion.
On the energy front, Pace Digitek has made a strategic foray into Battery Energy Storage Systems (BESS), building India’s largest BESS plant in Bengaluru with a capacity of 5 GWh. These lithium-ion batteries are crucial not just for telecom towers but also for grid-scale renewable integration, supporting India’s 500 GW clean energy target by 2030.
The company has already secured 2.2 GWh of storage projects, aided by Viability Gap Funding (VGF) from the Ministry of Power, ensuring steady government-backed demand for its solutions.
Core Strengths of Pace Digitek:
- Integrated Model: Backward integration ensures cost efficiency, supply chain control, and quality assurance.
- Diversified Business: Strong presence in telecom, growing dominance in renewable energy storage.
- Robust Order Book: Nearly ₹7,976 crore order book across telecom and energy projects.
- Strategic Promoter Group: Led by Maddisetty family with deep expertise in telecom and energy infrastructure.
With two state-of-the-art manufacturing facilities in Bengaluru, a strong execution track record, and a global vision, Pace Digitek is well-positioned to benefit from both the telecom boom and the renewable energy revolution.
Financial Performance of Pace Digitek Ltd.
The financial performance of Pace Digitek Ltd. demonstrates a strong growth trajectory, particularly in profitability and balance sheet strength. While revenue has remained stable in FY25 compared to FY24, the company has delivered a 21% growth in PAT, reflecting improved margins and operational efficiency.
Financial Highlights (₹ in Crores)
| Particulars | FY25 | FY24 | FY23 |
|---|---|---|---|
| Assets | 2,648.96 | 2,253.87 | 840.15 |
| Total Income | 2,462.20 | 2,460.27 | 514.66 |
| EBITDA | 505.13 | 423.75 | 39.75 |
| Profit After Tax (PAT) | 279.10 | 229.87 | 16.53 |
| Net Worth | 1,080.33 | 450.06 | 228.79 |
| Reserves & Surplus | 1,134.21 | 534.58 | 313.31 |
| Total Borrowings | 160.70 | 493.19 | 192.11 |
🔹 Revenue growth has plateaued in FY25, but margins expanded significantly due to better cost controls.
🔹 PAT has grown from just ₹16.53 crore in FY23 to ₹279.10 crore in FY25, showing a massive turnaround.
🔹 Borrowings have reduced sharply from ₹493 crore in FY24 to ₹160 crore in FY25, highlighting deleveraging.
Key Performance Indicators (KPIs)
The Pace Digitek IPO offers a fundamentally strong proposition with robust return ratios and balance sheet metrics.
| KPI | FY25 | FY24 | FY23 |
|---|---|---|---|
| EPS (₹) | 16.30 | 14.63 | 0.95 |
| EPS Growth (%) | 11.39% | 1,435% | – |
| PAT Margin (%) | 11.44% | 9.44% | 3.29% |
| ROE (%) | 23.09% | 40.53% | 4.93% |
| RoNW (%) | 22.87% | 40.67% | 4.49% |
| ROCE (%) | 37.89% | 40.85% | 6.99% |
| Debt/Equity | 0.13 | 0.87 | 0.57 |
| Interest Coverage Ratio | 4.33 | 3.74 | 2.84 |
| Current Ratio | 1.72 | 1.25 | 1.45 |
| NAV/Book Value (₹) | 71.24 | 35.97 | 21.22 |
| Net Capital Turnover (x) | 2.52 | 6.03 | 2.43 |
- Healthy return ratios (ROE 23.09%, ROCE 37.89%) signal strong capital efficiency.
- Leverage is minimal (Debt/Equity 0.13), giving financial flexibility.
- EBITDA margin expanded to 20.71% in FY25 from just 7.7% in FY23.
Valuation & Peer Comparison of Pace Digitek IPO
The valuation of the Pace Digitek IPO appears attractive when compared with listed peers in the telecom and energy infrastructure space.
- Price to Book Value: 3.07x
- EPS (Pre-IPO): ₹15.64 | EPS (Post-IPO): ₹12.93
- P/E Ratio: 14x (Pre-IPO) | 16.94x (Post-IPO)
- Market Cap (Post IPO): ₹4,727.03 crore
Peer Comparison:
| Company | EPS (₹) | NAV (₹) | P/E (x) | RoNW (%) |
|---|---|---|---|---|
| Pace Digitek | 16.30 | 71.24 | 16.94 | 22.87 |
| HFCL | 1.23 | 28.28 | 60.07 | 4.35 |
| Exicom Tele-Systems | -9.11 | 64.35 | – | -17.93 |
| Bondada Engineering | 10.33 | 41.24 | 37.76 | 25.05 |
🔹 Pace Digitek IPO offers a much lower P/E compared to HFCL (60x) and Bondada Engineering (37.7x), making valuations reasonable.
🔹 RoNW at 22.87% is strong and comparable to Bondada’s 25%, far superior to HFCL.
🔹 EPS at ₹16.3 is significantly higher than peers, reflecting strong profitability.
Strengths & Risks of Pace Digitek IPO
Every IPO comes with opportunities and challenges. Below is a side-by-side comparison of the company’s strengths and risks to help investors weigh their decisions.
| Strengths | Risks |
|---|---|
| Strong financial growth with PAT up 21% YoY (FY25 vs FY24). | Revenue growth has plateaued – Total income nearly flat between FY25 & FY24. |
| Healthy return ratios – ROE at 23.09%, ROCE at 37.89% indicate efficient capital use. | Dependency on telecom and networking sector makes business cyclical and sensitive to technology shifts. |
| Low leverage with Debt-to-Equity at 0.13 – strong balance sheet and financial flexibility. | Competitive industry with listed players like HFCL and Bondada Engineering. Pricing pressures may impact margins. |
| Expanding EBITDA margins (20.71% in FY25 vs 7.7% in FY23). | Post-IPO dilution reduces EPS from ₹15.64 to ₹12.93, impacting valuations. |
| Robust reserves and net worth growth (₹1,080 Cr in FY25 vs ₹228 Cr in FY23). | Global macro factors and supply-chain risks could affect telecom infrastructure demand. |
Pace Digitek IPO GMP (Grey Market Premium)
The Grey Market Premium (GMP) gives an early indication of investor sentiment before listing.
| GMP Date | IPO Price | GMP | Sub2 Sauda Rate | Estimated Listing Price | Estimated Profit* | Last Updated |
|---|---|---|---|---|---|---|
| 25-09-2025 | ₹219.00 | ₹25 (GMP Up) | 1300/18200 | ₹244 (11.42%) | ₹1,700 | 25-Sep-2025 |
📊 Analysis:
- Current GMP suggests a listing gain of ~11.42% over the issue price.
- Positive momentum in grey market shows strong retail and HNI participation.
- However, GMP is subject to market volatility and not a guaranteed indicator of listing performance.
Conclusion / Outlook
The Pace Digitek IPO offers a balanced mix of strong fundamentals and reasonable valuations.
- Financially, the company has shown a 21% PAT growth in FY25, expanded margins, and significantly reduced debt levels.
- Return ratios like ROE (23.09%) and ROCE (37.89%) make it one of the more efficient players in its space.
- Compared to peers, its P/E of 16.94x looks relatively attractive against HFCL (60x) and Bondada Engineering (37.7x).
On the flip side, revenue growth has remained flat in FY25, and EPS dilution post-IPO is something investors need to factor in.
💡 Outlook: Given the robust financial profile, improving margins, low debt, and moderate valuations, the IPO looks appealing for investors with a medium to long-term horizon. Short-term listing gains may also be available considering the 11% GMP premium.
FAQs on Pace Digitek IPO
Q1. What is the issue size of the Pace Digitek IPO?
A1. The Pace Digitek IPO is a book-built issue worth ₹819.15 crore, entirely a fresh issue of 3.74 crore equity shares.
Q2. What is the price band of the Pace Digitek IPO?
A2. The price band for Pace Digitek IPO is set between ₹208 – ₹219 per share.
Q3. What are the important dates for the Pace Digitek IPO?
A3. The IPO opens on September 26, 2025, closes on September 30, 2025, with tentative listing on October 6, 2025.
Q4. What is the minimum lot size and investment required?
A4. The minimum lot size is 68 shares, requiring an investment of ₹14,892 at the upper band.
Q5. Who are the lead managers and registrar for the Pace Digitek IPO?
A5. Unistone Capital Pvt. Ltd. is the book running lead manager, and MUFG Intime India Pvt. Ltd. is the registrar.
Q6. What will be the promoter holding post-IPO?
A6. Promoter holding will reduce from 84.07% pre-issue to 69.50% post-issue.
Q7. How will Pace Digitek utilize the IPO proceeds?
A7. The proceeds will be used for funding capital expenditure (~₹630 Cr) and for general corporate purposes.
Q8. What are the financial highlights of Pace Digitek Ltd.?
A8. In FY25, Pace Digitek reported ₹2,462 Cr income, ₹279 Cr PAT, with an EBITDA margin of 20.71% and ROE of 23.09%.
Q9. How does Pace Digitek IPO compare with its peers?
A9. At a P/E of 16.94x, Pace Digitek looks cheaper compared to HFCL (60x) and Bondada Engineering (37.7x), making valuations attractive.
Q10. What is the GMP (Grey Market Premium) of the Pace Digitek IPO?
A10. As of 25 September 2025, GMP is ₹25, indicating a potential listing gain of ~11% over the issue price.
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