Bengaluru-based telecom infra firm files for ₹900cr IPO
What's the story
Bengaluru-based Pace Digitek, a leading provider of solutions in the telecom infrastructure sector, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).
The company plans to raise ₹900 crore through an initial public offering (IPO).
The IPO will include a fresh issue of shares with a face value of ₹2 each, possibly including an equity share issue of up to ₹180 crore as part of pre-IPO placement.
Allocation details
IPO allocation and fund utilization
The company has reserved 50% of the issue for qualified institutional buyers (QIBs), 15% for non-institutional investors, and the remaining 35% for retail investors.
The proceeds from the fresh issue, worth ₹630 crore, will be used for capital expenditure requirements and general corporate purposes.
Unistone Capital is the sole book-running lead manager while MUFG Intime India is the registrar to this issue.
Company profile
Pace Digitek's business and revenue growth
Pace Digitek focuses on telecom tower infrastructure and optical fiber cables, operating in India, Myanmar, and Africa.
The company's revenue from operations skyrocketed by 383.81%, increasing from ₹503 crore in FY 2023 to ₹2,434 crore in FY 2024.
Profit after tax also saw a massive growth of 1,290.38%, rising from ₹16.53 crore in FY 2023 to ₹229.87 crore in FY 2024.
Information
Financial performance and future prospects
For the six months ending September 30, 2024, Pace Digitek reported revenue from operations of ₹1,188 crore and profit of ₹152 crore. This massive growth in revenue and profit over the last two fiscal years highlights its strong position in the telecom infrastructure industry.