SEBI nod for Pace Digitek IPO

The Securities and Exchange Board of India (SEBI) has approved Pace Digitek Limited's Draft Red Herring Prospectus (DRHP), paving the way for the company to launch its Initial Public Offering (IPO). This approval was granted through an observation letter dated August 29, 2025, following the company's DRHP filing on March 27, 2025.  

Pace Digitek Limited, headquartered in Bengaluru, is a multidisciplinary solutions provider specialising in the telecom passive infrastructure sector, including telecom tower infrastructure and optical fibre cables. 

The company, incorporated in 2007 by Venugopal Rao Maddisetty, has evolved from manufacturing passive electrical equipment to offering comprehensive turnkey solutions across India, Myanmar, and Africa.

Financial Snapshot

The company's revenue from operations surged by 383.81%, increasing from ₹503 crore in FY23 to ₹2,434 crore in FY24. Profit after tax (PAT) also experienced remarkable growth of 1,290.38%, rising from ₹16.53 crore in FY23 to ₹229 crore in FY24.  On a consolidated basis, revenue stood at ₹2,438 crore in FY25, almost flat compared to ₹2,434 crore in FY24. However, the profits tell a different story. Consolidated profit increased to ₹279 crore in FY25 from ₹229 crore in FY24, marking a healthy 21% year-on-year growth.

Unlisted share price of Pace Digitek currently trades at around ₹230, implying a P/E multiple of ~14.4x based on FY25 EPS of ₹16. Based on its expected ~₹4,104 crore IPO valuation, the company would be priced at about 15x earnings and ~2x sales. 

Pace Digetek IPO Details

• The proposed issue is a pure fresh issue of up to ₹900 crore. The DRHP also enables a pre-IPO placement of up to ₹180 crore; if that’s executed, the fresh issue size will be trimmed accordingly. 
• ​Proceeds are earmarked primarily for capex of ₹630 crore notably to invest in subsidiary Pace Renewable Energies and to set up Battery Energy Storage Systems (BESS) for an MSEDCL-awarded project plus general corporate purposes. Unistone Capital is the sole BRLM and MUFG Intime the registrar.

The industry backdrop also favors Pace Digitek. Data consumption in India is growing at one of the fastest rates in the world, and telecom companies are aggressively expanding fiber and 5G coverage. Government policies like the National Broadband Mission are also pushing for deeper connectivity across urban and rural areas.