The listing was marginally lower than the unlisted market premium expectation. The grey market premium (GMP) on the stock hovered at around 8% ahead of the debut.
The Rs 819.15 crore IPO received a moderate overall subscription of 1.68 times, with participation led by high net-worth investors (3.06x) and qualified institutional buyers (1.69x), while retail investors subscribed 1.09 times of their allotted quota. The issue also saw an employee reservation with a Rs 20 per share discount.
Strong presence in telecom and energy infrastructure
Pace Digitek is a multi-disciplinary telecom infrastructure and energy solutions provider that operates across telecom, energy, and ICT (Information, Communication & Technology) segments.
In the telecom vertical, the company manufactures passive telecom components, undertakes O&M services for telecom towers, and executes turnkey EPC projects such as tower erection and optical fiber cable (OFC) development.
Its energy business focuses on solar power solutions — including the solarisation of telecom towers under a build-own-operate (BOO) model and the manufacturing of lithium-ion battery systems for telecom energy storage. The firm is also active in rural electrification projects and EPC solar contracts.
Solid financial growth and diversified business
Financially, Pace Digitek has demonstrated rapid expansion over the last three years. In FY25, its revenue stood at Rs 2,462 crore, while net profit rose 21% year-on-year to Rs 279 crore, compared to Rs 230 crore in FY24.
The company maintained strong profitability metrics with an EBITDA margin of 20.7%, PAT margin of 11.4%, and return on equity (ROE) of 23%. Its debt-to-equity ratio improved to 0.13, indicating a strong balance sheet after deleveraging.
At the upper price band, the company is valued at a post-issue P/E of 16.9x, translating to a market cap of Rs 4,727 crore.
Fund utilisation
Prior to opening for subscription, Pace Digitek raised Rs 245 crore from anchor investors, showing institutional confidence in its business model.
Proceeds from the IPO will be used to fund capital expenditure of Rs 630 crore for capacity expansion and technology upgrades, as well as for general corporate purposes.
While the grey market signals a mild 8% premium, reflecting cautious optimism, investors will be watching closely how Pace Digitek’s diversified telecom–energy–ICT model performs once the stock lists on the bourses.
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