Pace Digitek Ltd, a Bengaluru-based telecom infrastructure solutions provider, is nearing the close of its initial public offering (IPO) with strong investor participation. The IPO, which carries a price band of ₹208–219 per share, has achieved 77 percent subscription as of day three, indicating significant demand across multiple investor categories. Retail investors, non-institutional investors (NIIs), and qualified institutional buyers (QIBs) have all contributed to this response, demonstrating broad interest in the company’s market debut.
By 11:30 IST on the third day, the company had received bids for 2,13,32,416 shares against 2,76,06,555 shares on offer. The retail portion has been subscribed 79 percent, while the NII segment has recorded a subscription of 1.40 times. The QIB allocation has been more modest, with 27 percent of shares booked so far. Employees, too, showed notable participation, subscribing 1.36 times the shares reserved for them. The offering will close today, Tuesday, September 30, marking the conclusion of a three-day subscription period that began with strong interest from various investor categories.
On the second day of the IPO, the subscription stood at 55 percent overall. The non-institutional segment led the demand with 78 percent subscription, while retail individual investors achieved 62 percent subscription. QIBs had booked 23 percent of their allocated shares by the end of day two. These numbers underscore a steady increase in participation as the IPO progressed, reflecting the company’s appeal to both domestic retail investors and institutional players.
Before the IPO, Pace Digitek secured commitments from anchor investors totaling over ₹245 crore, providing additional confidence in the issue. The anchor investment signals institutional backing and helps set the tone for retail and NII subscriptions. This preparatory step further enhanced market optimism ahead of the public subscription phase.
Established in 2007, Pace Digitek operates in the telecom passive infrastructure sector, which includes telecom tower infrastructure and optical fiber cables. The company has positioned itself as a versatile solutions provider within this space, offering services across multiple verticals. Its integrated business model is designed to enhance operational efficiency while maintaining quality standards, and it benefits from favorable industry trends, including growth in renewable energy and geographical diversification of operations.
Grey Market Trends Indicate Premium Listing
In the unlisted market, Pace Digitek shares have been trading at a premium. The grey market premium (GMP) for the IPO stands at ₹18 per share, according to investorgain.com. Considering the upper end of the IPO price band of ₹219, this translates into an estimated listing price of around ₹237 per share, suggesting a potential gain of 8.22 percent on the debut.
Analysis of grey market trends over the last ten sessions indicates a rising GMP, reflecting optimism about the stock’s performance on listing day. While such unofficial trading metrics do not guarantee the actual listing outcome, they provide insight into market sentiment and expectations. The GMP for Pace Digitek ranges between a minimum of ₹0 and a maximum of ₹35, showing a wide spectrum of speculative activity and signaling strong investor interest.
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IPO Review and Valuation
According to Choice Equity Broking, Pace Digitek’s valuation is attractive compared to its industry peers. At the upper end of the pricing band, the company’s price-to-earnings (P/E) ratio stands at 16.9 times, based on an FY25 earnings per share (EPS) of ₹12.9. The enterprise value-to-sales (EV/Sales) ratio is 1.6 times, which is lower than that of comparable companies, indicating potential undervaluation. Analysts note that a strong order backlog provides consistent revenue visibility, while the integrated business model supports cost efficiency and quality control.
Reliance Securities has also evaluated the IPO and highlighted the compelling growth narrative of Pace Digitek. The company operates in sectors with long-term demand drivers, including telecommunications infrastructure, fiber broadband, and energy storage. With a substantial order backlog and diversified operations, the company is expected to have robust revenue visibility. The IPO proceeds are intended for expansion, further strengthening its growth prospects. Analysts caution that capital intensity and regulatory dependence are challenges, but the firm’s technological expertise and track record of successful execution render it an attractive opportunity within India’s digital and renewable infrastructure sector.
IPO Details and Fund Utilization
The total size of the Pace Digitek IPO is ₹819.15 crore, consisting of a new issue of shares. The funds raised from the public offering are primarily intended to meet capital expenditure needs, which are crucial for the company’s planned expansion in the telecom infrastructure segment. A portion of the proceeds has also been earmarked for general corporate purposes, providing flexibility for operational and strategic initiatives.
Unistone Capital is the exclusive book-running lead manager for the offering, overseeing the subscription process and allocation of shares. The coordinated management of the IPO has facilitated smooth participation from institutional and retail investors alike.
Market Perspective and Investor Sentiment
The subscription trend over the three-day IPO period demonstrates a steady rise in interest, particularly from retail and non-institutional investors. The retail portion has been consistently strong, indicating trust in the company’s fundamentals and growth potential. The NII segment has also shown above-average subscription rates, reflecting confidence in the company’s long-term prospects. While QIB participation is comparatively lower at this stage, the early backing from anchor investors underscores institutional support for the offering.
Grey market activity and estimated GMP indicate investor expectations of a positive listing, with a potential premium of over 8 percent at the upper end of the price band. Analysts’ reviews further support the notion that the IPO is attractively priced, with valuations lower than competitors and a solid order backlog providing revenue visibility. The combination of favorable industry trends, geographic diversification, and technological strengths contributes to a compelling investment case.
The telecom infrastructure sector, in which Pace Digitek operates, is poised for continued growth driven by digitalization, fiber broadband expansion, and renewable energy integration. The company’s positioning within this ecosystem, along with its operational experience and execution track record, suggests that the IPO could offer long-term investment potential for both retail and institutional investors.
Conclusion
As Pace Digitek’s IPO approaches the close of its three-day subscription period, the overall subscription rate of 77 percent reflects strong market interest and investor confidence. The retail portion has seen healthy participation, the NII segment is robustly subscribed, and employee participation has been solid, while QIBs gradually increase their engagement. The grey market premium points to expectations of a premium listing, and analysts have rated the IPO as a “SUBSCRIBE” based on valuations, growth prospects, and favorable industry dynamics.
The IPO proceeds, amounting to ₹630 crore from the public issue, will support capital expenditure and general corporate purposes, enabling the company to expand its telecom infrastructure operations further. With strong demand, anchor investor backing of over ₹245 crore, and positive market sentiment reflected in grey market activity, Pace Digitek is poised for a successful debut on the stock exchanges. Investors closely following the issue have reason to be optimistic about both short-term listing gains and long-term growth potential.
