Pace Digitek Ltd (MAINBOARD)

IPO Details

Company Financials (In ₹Crore)

About Company

• Incorporated: 2007
• Nature of Business: Multi-disciplinary solutions provider with a primary focus on telecom infrastructure.
• Manufacturing Facilities: 2 units located in Bengaluru, dedicated to telecom infrastructure equipment and lithium-ion batteries.

Business Verticals

1. Telecom

• Manufacturing of passive telecom equipment
• O&M services for telecom towers and annual maintenance of OFC & related services
• Turnkey projects, including tower erection and OFC network development

2. Energy

• Solar energy projects under BOO (Build-Own-Operate) model
• Solarization of telecom towers (supply & installation of solar modules, lithium-ion batteries, and passive equipment)
• Rural electrification projects under EPC (Engineering, Procurement & Construction) model
• Manufacturing and supply of lithium-ion battery systems for telecom tower energy storage

3. ICT (Information, Communication & Technology)

• Surveillance systems
• Smart classrooms
• Smart kiosks for agricultural applications

Subsidiary – Lineage Power Pvt. Ltd.

• Provides telecom tower infrastructure support products
• Power Solutions: Switch-mode Power Supply, Hybrid DC Power Systems
• Solar Solutions: Charge Control Units
• Pace Digitek IPO Objectives
• ₹630 Crores for Capital Expenditure.
• An unspecified amount for General Corporate Purposes.

Strength

Strong Leadership and R&D Focus: The company is led by an experienced promoter with over 20 years in telecom and energy, supported by a skilled board and management team. A dedicated 19-member R&D team drives product innovation and system improvements through a well-established in-house R&D centre.

Advanced Manufacturing Capabilities: With three manufacturing facilities in Bengaluru spread over 200,000 sq. ft., the company produces telecom infra equipment, lithium-ion battery systems, and BESS. These facilities are ISO-certified and CMMi Level 3 accredited, ensuring high-quality and efficient production.

Comprehensive Telecom Solutions: The company provides integrated, end-to-end solutions in the telecom tower sector, covering equipment manufacturing, EPC projects, product lifecycle management, and O&M services. Its positioning within a growing telecom and fibre EPC market strengthens its long-term growth prospects.

Weakness

High Customer Concentration: The company relies heavily on its top 10 customers, contributing over 90% of revenues. Loss of any key customer may significantly impact financial performance.

Dependence on Telecom Sector: A major share of revenue comes from the telecom sector. Any slowdown in this sector could adversely affect business operations.

Geographic Revenue Concentration: Revenues are concentrated in specific states, mainly Maharashtra, Karnataka, Jammu & Kashmir, Andhra Pradesh, and Tamil Nadu. Limited regional presence may restrict growth and increase risk exposure.