Pace Digitek IPO

Pace Digitek Limited, incorporated in 2007, is a multi-disciplinary solutions provider primarily focused on the telecom infrastructure industry. The company operates across three main business verticals: Telecom, Energy, and ICT. In the Telecom sector, it engages in the manufacturing of passive telecom equipment, offers operation and maintenance services for telecom towers, and undertakes turnkey projects involving the erection of telecom towers and development of OFC networks. In the Energy sector, Pace Digitek executes solar energy projects under a Build-Own-Operate model, solarizes telecom towers by supplying and installing solar modules and lithium-ion batteries, and implements rural electrification projects under an EPC model. The company also manufactures and supplies lithium-ion battery systems for energy storage in telecom towers.

In the ICT segment, Pace Digitek provides solutions such as surveillance systems, smart classrooms, and smart kiosks for agricultural applications. Through its subsidiary Lineage Power Pvt Ltd, the company supports telecom tower infrastructure with power management solutions like switch-mode power supplies and hybrid DC power systems, along with solar charge control units. The company operates two manufacturing facilities in Bengaluru that produce telecom infrastructure equipment and lithium-ion batteries. As of July 31, 2025, Pace Digitek Limited employs 1,513 permanent staff.

Pace Digitek IPO Strengths

• Provides comprehensive telecom infrastructure solutions from product manufacturing to project execution and lifecycle services, covering telecom towers, optical fibre networks, and energy solutions.
• Operates across telecom infrastructure, renewable energy (solarization and battery energy storage systems), and ICT solutions, reducing dependence on a single vertical.
• Active in multiple Indian states including Maharashtra, Gujarat, Karnataka, Andhra Pradesh, and northeastern states, along with international markets such as Myanmar and Africa.
• Owns state-of-the-art manufacturing facilities and offers advanced products like lithium-ion battery systems, containerized Battery Energy Storage Systems (BESS), and energy management systems.
• Holds a strong and growing order book, benefiting from the increasing telecom infrastructure investments and renewable energy push in India and globally.
• Acquired Lineage Power from GE, enabling control over power management product manufacturing that enhances margin and supply chain control.
• Positioned to capitalize on key infrastructural developments such as 5G rollout, digital infrastructure, rural electrification, and renewable energy programs.

Pace Digitek IPO Risks

• A significant portion of revenue comes from a few major clients, including government entities. Loss or reduction of business from these customers could materially impact revenue and profitability.
• Many contracts are awarded through competitive bidding by government and public sector undertakings, which are subject to political and budgetary changes, leading to revenue unpredictability.
• Most contracts are short-term (1-3 years) with annual renewals, causing uncertainty over future business continuity and revenue streams.
• Large-scale fiber deployment, energy storage, and infrastructure projects entail risks of delays, cost overruns, and operational challenges that could reduce profitability.
• Intense competition in telecom infrastructure and renewable energy sectors may lead to pricing pressure and margin erosion.
• Dependence on timely procurement of raw materials and components exposes the company to risks of supply disruptions and price volatility.
• While operating in multiple states, the revenue is concentrated in certain regions, exposing Pace Digitek to regional economic and regulatory risks.