Pace Digitek IPO will open for subscription on September 26, 2025, and close on September 30, 2025. Incorporated in 2007, Pace Digitek Limited is a multi-disciplinary solutions provider with a strong presence in the telecom infrastructure industry, while also operating across the energy and ICT (Information, Communication and Technology) sectors.
This blog will provide all the information on the Pace Digitek IPO, including issue size, price band, proceeds usage, financial performance, peer comparison, and key risk factors.
Pace Digitek IPO Date
The key pointers for the Pace Digitek IPO dates are:
- Bidding Opening Date: September 26, 2025
- Bidding Closing Date: September 30, 2025
- Allotment Date: October 1, 2025
- Initiation of Refunds (in case of less or no allotment): October 3, 2025
- Shares Credited to Your Demat Account: October 3, 2025
- IPO Listing Date: October 6, 2025
- Listing on Exchange: BSE and NSE
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- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
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Pace Digitek IPO Issue Size
Pace Digitek IPO valuation, as denoted by the market capitalisation, stood at ₹4,727.03 crores. Here are the essential details:
- Pace Digitek IPO Price Band: ₹208 to ₹219 per share
- Lot Size: 68 Shares
- Total Issue Size and Amount: 3.74 crore shares (aggregating up to ₹819.15 crores)
- Fresh Issue Size and Amount: 3.74 crore shares (aggregating up to ₹819.15 crores)
Pace Digitek IPO Proceeds Usage
The net proceeds from the Pace Digitek IPO are proposed to be utilised for the following purposes:
- Funding capital expenditure requirements: A significant portion of the proceeds will be directed towards funding capital expenditure for investment in subsidiary Pace Renewable Energies Private Limited. The purpose is to set up Battery Energy Storage Systems (BESS) for a project awarded by Maharashtra State Electricity Distribution Company Limited (MSEDCL)
- General corporate purposes: The remaining funds will be utilised to meet various strategic and operational needs of the business.
Pace Digitek IPO Reservations
Pace Digitek IPO reservations to different investors are:
- For QIBs: Not more than 50% of the net issue
- For NIIs: Not less than 15% of the net issue
- For Retail Investors: Not less than 35% of the net issue
Pace Digitek IPO Lot Size
Pace Digitek IPO lot size is 68 shares, wherein bidding can be done in multiples. The minimum amount that each category of investor needs to bid in this IPO is:
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 68 | ₹14,892 |
| S-HNI (Min) | 14 | 952 | ₹2,08,488 |
| B-HNI (Min) | 68 | 4,624 | ₹10,12,656 |
Pace Digitek IPO Details: Promoter Holding
Maddisetty Venugopal Rao, Padma Venugopal Maddisetty, Rajiv Maddisetty, and Lahari Maddisetty are the company promoters.
Pace Digitek Limited: Company Overview
Incorporated in 2007, Pace Digitek Limited is a multi-disciplinary solutions provider with a primary focus on telecom infrastructure, complemented by activities in energy and ICT.
Through its subsidiary, Lineage Power Pvt Ltd, the company supplies key products for tower infrastructure, including power management solutions such as switch-mode power supplies and hybrid DC power systems, as well as solar charge control units.
It operates two manufacturing facilities in Bengaluru for telecom infrastructure equipment and lithium-ion batteries, and employs 1,513 permanent staff as of 31 July 2025.
Business Segments
In telecom, the company manufactures passive equipment, provides operations and maintenance services for towers, undertakes annual OFC maintenance, and executes turnkey work such as tower erection and OFC network development.
Its energy vertical delivers solar projects on a Build-Own-Operate model, carries out solarisation of telecom towers, including the supply and installation of solar modules, lithium-ion batteries, and related passive equipment, executes rural electrification on an EPC basis, and manufactures and supplies lithium-ion battery systems for tower energy storage.
Within ICT, Pace Digitek offers surveillance solutions, smart classroom deployments and smart kiosks for agricultural use.
Key Strengths
The company’s competitive strengths include an end-to-end, integrated operating model in the telecom tower ecosystem, diversified business segments supported by a strong order book, an experienced and qualified senior leadership team, advanced manufacturing facilities that drive production efficiency, and a consistent record of financial and operational performance with profitable growth.
Pace Digitek Limited: Financial Performance
Pace Digitek Limited’s key financials for different periods are as follows:
| Particulars (in ₹ Crore) | 31 Mar 2025 | 31 Mar 2024 | YoY Change |
|---|---|---|---|
| Total Income | 2,462.20 | 2,460.27 | 0.1% |
| Profit After Tax (PAT) | 279.10 | 229.87 | 21% |
| EBITDA | 505.13 | 423.75 | 19% |
| Net Worth | 1,080.33 | 450.06 | 140% |
| Assets | 2,648.96 | 2,253.87 | 18% |
| Total Borrowing | 160.70 | 493.19 | -67% |
- Revenue Stability: Total income remained steady at ₹2,462.20 crore in FY25 compared to ₹2,460.27 crore in FY24, reflecting consistent business performance.
- Profitability: PAT grew by 21%, moving from ₹229.87 crore in FY24 to ₹279.10 crore in FY25, indicating improved margins and stronger bottom-line growth.
- EBITDA Performance: EBITDA increased by 19%, from ₹423.75 crore in FY24 to ₹505.13 crore in FY25, highlighting operational efficiency and better earnings capacity.
- Net Worth: Net worth surged from ₹450.06 crore in FY24 to ₹1,080.33 crore in FY25, supported by growth in reserves and retained earnings.
- Asset Base: Assets expanded by 18%, from ₹2,253.87 crore in FY24 to ₹2,648.96 crore in FY25, showcasing growth in infrastructure and resources.
- Debt Position: Borrowings reduced sharply by 67%, falling from ₹493.19 crore in FY24 to ₹160.70 crore in FY25, indicating stronger financial management and lower leverage.
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
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Pace Digitek IPO: Peer Comparison
Here’s the peer comparison table for Pace Digitek Limited with its listed peers:
| Company Name (FY25) | EPS (Basic ₹) | P/E (x) | RoNW (%) |
|---|---|---|---|
| Pace Digitek | 16.30 | 14 | 22.87 |
| HFCL | 1.23 | 60.07 | 4.35 |
| Exicom Tele-Systems | -9.11 | – | -17.93 |
| Bondada Engineering | 10.33 | 37.76 | 25.05 |
- EPS: Pace Digitek has a strong EPS of ₹16.30, much higher than HFCL (₹1.23) and Bondada Engineering (₹10.33), while Exicom reported a negative EPS, indicating losses.
- P/E Ratio: With a P/E of 14, Pace Digitek appears reasonably valued, and it is much lower than HFCL’s high multiple of 60.07 and Bondada’s 37.76.
- RoNW: Pace Digitek shows a solid return on net worth at 22.87%, outperforming HFCL and Exicom, though slightly behind Bondada Engineering.
Pace Digitek IPO Risk Factors
Pace Digitek IPO GMP is ₹18 as of September 24, 2025 (at 17:37). It is expected to list at an 8.22% gain at a price of ₹237. However, GMP is not a safe or assured criterion to bid for an IPO. It is important to do your own analysis before investing in any IPO.
Pace Digitek IPO is exposed to various risk factors that can eventually affect its business and investors’ perception:
- High Dependence on Key Customers: Over 90% of revenue in the last three financial years came from the top 10 customers. Losing any of them could seriously impact business performance and financial health.
- Reliance on Government Tenders: A large share of revenue comes from public sector clients through competitive bidding. Failure to win tenders or the need to bid low could hurt margins and growth.
- Sector Concentration Risk: The telecom sector contributes the majority of revenue. Any slowdown or disruption in this sector may significantly affect operations and earnings.
- Geographic Revenue Concentration: Revenue is heavily concentrated in states like Maharashtra, Karnataka, and Andhra Pradesh, especially in the western region. Any operational issues in these areas may impact future growth.
- Vendor Dependency: A few vendors supply most of the raw materials. Disruption or loss of key vendors could lead to supply chain issues and affect revenue.
- Negative Cash Flows: The company has reported negative cash flows from investing and operating activities in recent financial years. If this continues, it could limit future growth and impact overall financial performance.
For all the insights on Pace Digitek IPO and detailed expert advice, you can download the SMC ACE App or visit the SMC telegram channels. Take smart decisions and apply for the Pace Digitek IPO easily on the SMC ACE Apply by opening free demat account now.
Frequently Asked Questions – FAQs
1. What are the IPO dates for Pace Digitek?
Pace Digitek IPO will open for subscription on September 26, 2025, and close on September 30, 2025. The basis of allotment is expected to be finalised on October 1, 2025, and the shares will list on the BSE and NSE on October 6, 2025.
2. What is the price band and lot size for the IPO?
The IPO price band has been set between ₹208 and ₹219 per share. The minimum lot size is 68 shares, meaning retail investors need to invest at least ₹14,892 at the upper price band.
3. What is the size of the issue and its valuation?
The IPO issue size is 3.74 crore shares, aggregating up to ₹819.15 crores. At this valuation, the market capitalisation of Pace Digitek is estimated at approximately ₹4,727.03 crores.
4. How will the company use the IPO proceeds?
The net proceeds from the issue will be primarily utilised to meet capital expenditure requirements (₹630 crores) and remaining for general corporate purposes.
References:
https://www.sebi.gov.in/filings/public-issues/sep-2025/pace-digitek-limited-rhp_96742.html
https://www.investorgain.com/gmp/pace-digitek-ipo-gmp/1464/
Author: All Content is verified by SMC Global Securities.
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