Pace Digitek Ltd has filed its draft red herring prospectus (DRHP) with capital markets regulator Sebi to raise Rs 900 crore via an initial public offering (IPO). The initial share sale, with a face value of Rs 2, consists entirely of fresh issuance of shares.
According to the DRHP, the may consider a further issue of specified securities, including through private placement, preferential allotment, rights issue, or any other method aggregating up to Rs 180 crore as pre-IPO placement. If the pre-IPO placement is completed, the amount raised under the pre-IPO placement will be reduced from the fresh issue.
Pace Digitek aims to use proceeds from the fresh issue to the tune of Rs 630 crore for funding capital expenditure requirements and general corporate purposes.
"The issue is being made through the book-building process, wherein not more than 50 per cent is allocated to qualified institutional buyers (QIBs), and not less than 15 per cent and 35 per cent of the net offer is assigned to non-institutional investors (NIIs) and retail individual bidders, respectively," the draft papers also mentioned.
Incorporated in 2007, the Bengaluru-based firm is a multi-disciplinary solutions provider specialising in the telecom passive infrastructure industry including telecom tower infrastructure and optical fibre cables.
Its revenue from operations has increased by 383.81 per cent from Rs 503.20 crore in the fiscal 2023 to Rs 2,434.48 crore in the fiscal 2024. Profit after tax (PAT) grew by 1,290.38 per cent, from Rs 16.53 crore in fiscal 2023 to Rs 229.87 crore in fiscal 2024.
For the six months ending on September 30, 2024, revenue from operations stood at Rs 1,188.35 crore and PAT came at Rs 152.04 crore.
According to a CRISIL report, the passive telecom infrastructure market size in India is estimated at Rs 1.6 lakh crore between 2020 and 2024 and is projected to increase to around Rs 2 lakh crore during 2023-2028.