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Pace Digitek Files DRHP with SEBI for INR 900 Crore IPO, Plans Investment in BESS Projects

Pace Digitek has filed the draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise INR 900 crore through an initial public offering (IPO). About INR 630 crore from IPO proceeds will be used for the company’s 750 MW/1,500 MWh BESS projects for MSEDCL in Maharashtra.

April 03, 2025. By Mrinmoy Dey

Bengaluru-based Pace Digitek has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) to raise INR 900 crore.

The company specialises in renewable energy solutions and telecom passive infrastructure, including telecom towers and optical fibre networks.

The IPO will consist of a fresh issue of equity shares with a face value of INR 2, aggregating up to INR 900 crore. The company may conduct a pre-IPO placement of up to INR 180 crore, which would reduce the size of the fresh issue accordingly. The price band and minimum bid lot will be finalised in consultation with the book-running lead manager.

As per the DRHP, 50 percent of the issue is reserved for Qualified Institutional Buyers (QIBs), 15 percent for Non-Institutional Investors (NIIs), and 35 percent for retail investors. The company’s equity shares are proposed to be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

The lion’s share of INR 630 crore from the IPO proceeds will be used to fund capital expenditure requirement for investment in its subsidiary, Pace Renewable Energies, for setting up battery energy storage systems (BESS) for a project awarded by the Maharashtra State Electricity Distribution Company Limited (MSEDCL). The remaining funds will be used for general corporate purposes.

The company has been awarded a project for setting up pilot projects of 250 MW/500 MWh for MSEDCL, with an additional green shoe capacity of up to 500 MW/ 1,000 MWh standalone battery energy storage systems in Maharashtra.

Unistone Capital is the sole book-running lead manager and MUFG Intime India is the registrar for the issue.

Founded in March 2007, Pace Digitek is a multidisciplinary solutions provider with a strong presence in telecom passive infrastructure. Initially a manufacturer of passive electrical equipment, the company has expanded its operations to include products, turnkey projects, operations and maintenance (O&M), and comprehensive services across India, Myanmar, and Africa.

For the six months ending September 30, 2024, Pace Digitek reported a revenue of INR 1,188.35 crore and a profit after tax (PAT) of INR 152 crore. In FY24, its revenue surged to INR 2,434.48 crore from INR 503 crore in FY23. PAT also increased to INR 229.87 crore in FY24 from INR 16.5 crore in FY23.

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Investment & Trading

Pace Digitek

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Draft Red Herring Prospectus

Renewable energy IPO

BESS projects in Maharashtra

MSEDCL Battery Storage Tender