Pace Digitek IPO

Incorporated in March 2007, Pace Digitek Limited is a telecom infrastructure solution provider with a significant focus on telecom tower erection and optical fibre cables. It undertakes manufacturing, installation, commissioning, operation and maintenance (O&M) of the telecom tower and optical fibre cable laying.

The company generates its revenue through three business verticals: telecommunications, energy, and information and communication technology (ICT). The telecom segment accounted for 94.22% of FY25 revenues, underpinned by turnkey tower installation, laying of optical fibre cable (OFC), and end-to-end O&M services.

The energy segment, representing 5.59% of FY25 revenues through telecom tower solarisation, battery energy storage systems (BESS), and rural electrification EPC projects. ICT products contribute 0.19% of revenues, covering smart surveillance, smart classrooms, and kiosks, marking the government's drive in digital infrastructure.

Pace Digitek's business model is highly integrated. From its subsidiary Lineage Power Pvt. Ltd., the company has three plants in Bengaluru and Bidadi spanning 200,000 sq. ft. These plants manufacture telecom power systems, lithium-ion battery systems, and BESS. In FY25, the company commissioned 3,740 telecom towers and laid 6,619 km of OFC, highlighting its project execution prowess. Meanwhile, its production facilities churned out 4,234 telecommunication power equipment units and 3,308 lithium-ion battery racks during the same year.

The company has a substantial order book of ₹7,633.61 crore as of March 31, 2025, spread across telecom towers, OFC, solar, BESS, and rural electrification projects. With diversification into BESS projects worth ₹2,470 crore, totalling to the energy segment worth ₹4,063 crore and telecom orders worth ₹3.570 crore. The passive telecom infrastructure industry is anticipated to climb from its estimated ₹1,650-1,700 billion collectively in FY20-24 to ₹2,000-2,100 billion for FY23-28, as per industry outlook. Assisted by state and federal policies, the solar power sector is projected to contribute 170-180 GW of capacity between the years 2026-30. Telecom power passive infrastructure has evolved from providing basic rectifiers and batteries to offering sophisticated, digitally controlled, and grid-integrated/ hybrid power solutions, keeping pace with advancements in telecom technology.

The company has evolved to meet the requirements of this change in telecom tower operations in terms of its passive equipment technology. Further, the company is well positioned to capitalise on the rising demand for the BESS segment, as a capacity of 8,640 MW or 34,720 MWh is estimated to be added between 2022- 2027 in the BESS segment as per the NEP Policy, 2023. It intends to invest up to ₹ 630 crore and provide BESS products in line with the Government of India’s drive towards enhancing renewable energy capacity.

Pace Digitek Limited is aiming to deepen its existing products and services and expand its geographical reach. It also intends to target setting up a network of towers for the ‘KAVACH Project’, which is an automatic train protection (ATP) system indigenously developed by Indian Railways through Research Designs & Standards Organisation (RDSO).

Now, Pace Digitek is launching its initial public offering (IPO), which is a completely fresh issue of ₹819.15 crore. Its shares will be listed on the NSE and BSE.