IPO Watch: Pace Digitek Limited has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO) to raise ₹900 crore.
Bengaluru-based Pace Digitek is a versatile solutions provider that focuses on the telecom passive infrastructure sector, including telecom tower infrastructure and optical fiber cables.
The company began its journey as a manufacturer of passive electrical equipment and has since broadened its Passive Infra operations to include various products, projects, operations and maintenance, and services and solutions. It delivers all-encompassing turnkey solutions and has established an operational presence across India, as well as in Myanmar and Africa.
Pace Digitek’s revenue from operations surged by 383.81%, rising from ₹503.20 crore in fiscal 2023 to ₹2,434.48 crore in fiscal 2024. The profit after tax experienced a remarkable growth of 1,290.38%, increasing from ₹16.53 crore in fiscal 2023 to ₹229.87 crore in fiscal 2024.
For the six months ending on September 30, 2024, revenue from operations reached ₹1,188.35 crore, while the profit after tax was ₹1,52.04 crore.
IPO details
IPO, priced at a face value of ₹2, involves a fresh issuance of shares totaling up to ₹900 crore. The company, after discussions with the book running lead managers (BRLMS), may explore additional issuance of specific securities through methods such as private placements, preferential allotments, rights issues, or other techniques that may reach up to ₹180 crore as a pre-IPO placement. Should the pre-IPO placement occur, the funds obtained through this placement will be deducted from the fresh issue total.
The funds generated from the fresh issue, amounting to ₹630 crore, will be used for capital expenditure needs and general corporate purposes. Unistone Capital Private Limited serves as the sole book-running lead manager, while MUFG Intime India Private Limited acts as the issue registrar.
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