Pace Digitek IPO Day 3: Issue booked 1.59x. Check GMP, review, subscription status, more.Should you apply?

Pace Digitek IPO Day 3: Pace Digitek IPO subscription status is 1.59x on day 3. The retail portion was subscribed 1.03x, and NII portion has been booked 2.90x, Qualified Institutional Buyers (QIBs) portion received 1.60x bids. Employee portion subscribed 1.73 times.

The company has received bids for 4,40,05,316 shares against 2,76,06,555 shares on offer, at 19:00 IST, according to data on BSE.

The initial public offering of telecom infrastructure solutions company Pace Digitek saw a 55% subscription by the second day of bidding on Monday. The portion for non-institutional investors was 78% subscribed, while retail individual investors (RIIs) achieved a 62% subscription rate. The allocation for qualified institutional buyers (QIBs) garnered a 23% subscription.

On Thursday, Pace Digitek Ltd announced that it has secured over ₹245 crore from anchor investors. The offering, which has a price range of ₹208-219 per share, will close today, Tuesday, September 30. Established in 2007, Pace Digitek is a versatile solutions provider focused on the telecom passive infrastructure sector, which includes telecom tower infrastructure and optical fiber cables.

Pace Digitek IPO GMP today

Pace Digitek IPO GMP today or grey market premium is ₹18 . This indicates Pace Digitek share price were trading at a premium of ₹18 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Pace Digitek share price was indicated at ₹237 apiece, which is 8.22% higher than the IPO price of ₹219.

According to the grey market trends observed over the last 10 sessions, the IPO GMP is currently rising and is anticipated to have a solid debut. Experts indicate that the minimum GMP stands at ₹0.00, while the maximum GMP reaches ₹35.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Pace Digitek IPO review

Based on analysis from Choice Equity Broking, at the upper end of its pricing range, the company has a P/E ratio of 16.9x (with FY25 EPS of Rs. 12.9) and an EV/Sales ratio of 1.6x, which is lower than its competitors. A strong order backlog provides consistent revenue visibility, while its integrated business model enhances cost efficiency and maintains quality control. Additionally, it benefits from favourable industry trends in renewable energy and geographical diversification. Therefore, they suggest a "SUBSCRIBE" rating.

Reliance Securities, a brokerage, indicated that the Pace Digitek IPO presents a compelling growth narrative, propelled by the telecommunications infrastructure, fibre broadband, and energy storage industries. With a strong order backlog, varied operations, and IPO funds designated for expansion, the company displays promising revenue visibility along with significant long-term growth prospects. Although there are challenges such as capital intensity and regulatory dependence, the firm’s technological strengths and successful execution history render it a compelling investment opportunity in India's digital and renewable infrastructure sector.

Pace Digitek IPO details

Pace Digitek IPO from the Bengaluru-based firm consists of a new issue of shares valued at ₹819.15 crore.

The funds raised from the public offering, totaling ₹630 crore, will be utilized to meet capital expenditure needs, with some of the amount also set aside for general corporate purposes.

Unistone Capital is the exclusive book-running lead manager for this offering.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.