Pace Digitek Limited

Pace Digitek Limited was incorporated in Bengaluru in 2007, originally as Pace Power Systems, and became a public limited company in November 2024. It supplies telecom passive infrastructure: the equipment, turnkey projects and ongoing operations and maintenance that keep telecom towers and optical fibre networks running. Its 2014 acquisition of GE Power Electronics India brought with it the Lineage Power brand, which the company still uses. The business now runs across three related areas. The first is manufacturing passive equipment, including power systems and lithium-ion battery packs. The second is renewable energy, handled largely through the subsidiary Pace Renewable Energies, which builds solar projects, solarises telecom towers and has moved into battery energy storage; the proceeds of this issue are earmarked for a storage project awarded by the Maharashtra State Electricity Distribution Company. The third covers information, communication and technology work such as surveillance and smart systems. Its projects span Maharashtra, Karnataka, Gujarat, Andhra Pradesh and the northeastern states, and it employed roughly 1,500 people as of mid-2025. Growth has been steep and lumpy. Revenue jumped from about 515 crore rupees in FY23 to roughly 2,460 crore rupees in FY24 and stayed near that level in FY25, while profit after tax climbed from about 17 crore rupees to roughly 279 crore rupees over the same span. The company reports a large confirmed order book and has cut its borrowings sharply, leaving a debt-to-equity ratio near 0.13. The character of that growth is also its main vulnerability: revenue is concentrated in a handful of public sector customers won through competitive tenders, and the working capital such contracts demand has at times pushed operating cash flow negative even in profitable years.

Ahead of the issue the company placed 1,11,93,807 equity shares with 15 institutional investors at 219 rupees per share, raising about 245 crore rupees. The largest tickets came from Compact Structure Fund, Bandhan Small Cap Fund and SBI General Insurance. Other participants included Societe Generale, Taurus Mutual Fund, Samsung India, Saint Capital Fund, Nexus Global Opportunities Fund, Holani Venture Capital, Sunrise Investment Trust and Aarth AIF. Domestic mutual funds took roughly 16 percent of the anchor book.