Pace Digitek IPO Opens On Sept. 26: GMP Signals Listing Gain; Check Key Details

Pace Digitek Ltd. is set to launch an initial public offering (IPO) to raise over Rs 800 crore from the primary market. The company serves the telecom industry. Ahead of its listing, the grey market premium (GMP) indicated a premium of over 12% for the issue. Investors who want to bid for shares in the IPO must check the following details before making an investment call.

According to InvestorGain, the GMP for the Pace Digitek IPO stood at Rs 27 as of 12:30 p.m. on Sept. 25. It indicates a listing price of Rs 246 apiece at a premium of 12.33% on the upper limit of the price band. 

Note: GMP does not represent official data and is based on speculation.

The Pace Digitek IPO is a book build issue of Rs 819.15 crore. It comprises entirely a fresh issue of 3.74 crore shares.

To participate in the IPO, retail investors need to bid for a single lot size of 68 shares, requiring an investment of Rs 14,892. Small Non-Institutional Investors need to bid for 14 lots, amounting to an investment of Rs 2,08,488. Big Non-Institutional Investors can participate in the IPO by bidding for a minimum of 68 lots. It will lead to an investment of Rs 10,12,656.

The price band for the IPO is set between Rs 208 and Rs 219 per share.

The subscription window will be open from Sept. 26 to Sept. 30, with the allotment expected to be finalised on Oct. 1. The company will transfer shares to the demat accounts of successful bidders on Oct. 3 and refunds for non-allottees will be done on the same day. 

The shares of the company are scheduled to list on the BSE and NSE on Oct. 6.

Qualified Institutional Buyers (QIBs) will be offered a maximum of 50% of the net issue. Retail investors will be allocated a minimum of 35% of the net issue and at least 15% will be reserved for Non-Institutional Investors. 

Unistone Capital Ltd. is the book running lead manager and MUFG Intime India Ltd. is the registrar of the issue.

The company will use proceeds from the IPO to fund capital expenditure and for general corporate purposes.

Pace Digitek provides telecom power solutions and solar solutions to the telecom industry. Apart from India, it also has a presence in Africa, Bangladesh, Myanmar, the Philippines and Sri Lanka.

The company reported a 21.42% year-on-year (YoY) increase in profit after tax (PAT) to Rs 279.10 crore in FY25 from Rs 229.87  crore in FY24. Revenue from operations rose 0.2% YoY to Rs 2,438.78 crore in FY25 from Rs 2,434.49 crore in FY24. 

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.