Telecom infra solution provider Pace Digitek to launch Rs 819-crore IPO on September 26

Pace Digitek Files Rs 819.15 Crore IPO to Fund Energy Storage and Telecom Expansion.

Expert Analysis:

• IPO Filing: Bengaluru-based telecom infrastructure provider Pace Digitek filed its Red Herring Prospectus with the Registrar of Companies on September 19 and will launch its IPO on September 26.

• IPO Details: The IPO comprises entirely fresh shares worth Rs 819.15 crore with no offer-for-sale, opens on September 26, closes on September 30, and the one-day anchor book will be launched on September 25.

• Allotment and Listing: Pace Digitek will finalize IPO share allotment by October 1, and trading on the bourses will commence from October 6.

• Offer Size and SEBI Approval: Pace Digitek reduced its IPO offer size from Rs 900 crore, initially filed on March 27, and received SEBI approval in the last week of August.

• Use of Proceeds: Pace Digitek will allocate Rs 630 crore from the fresh issue to set up battery energy storage systems (BESS) for a Maharashtra State Electricity Distribution Company (MSEDCL) project via subsidiary Pace Renewable Energies, with the remaining funds used for general corporate purposes.

• Shareholding and Merchant Banker: Promoter Maddisetty Venugopal Rao and family hold 84.06 percent, public 9.36 percent, others 6.58 percent; Unistone Capital is the sole merchant banker.