Pace Digitek shares soar over 4%. Why is this newly-listed stock rising despite the market crash?

Bengaluru-based telecom infrastructure solutions provider Pace Digitek saw its shares rise 4% in Tuesday's trading session, February 24, to ₹189.55 apiece, even as the Indian stock market traded with deep cuts.

The stock opened the session higher at ₹186 apiece and maintained the momentum to hit the day's high of ₹189.55, a 4% jump from the previous close of ₹182.10 apiece, even as the sell-off in the Indian stock market deepened. Today’s rally pushed the stock’s month-to-date returns to 7.6%.

What is driving Pace Digitek stock higher today?

The stock stole the spotlight after the company announced a fresh order win from Mukesh Ambani-led Reliance Industries. In its exchange filing on Monday, the company said that its material subsidiary, Lineage Power Private Limited, has secured a fresh order for the supply of Li-ion 48V 15S1P 314 AH battery packs.

The order, awarded by Reliance Industries, is worth ₹158 crore. It will be completed by August 2026.

The company also stated that neither the promoter nor the promoter group companies have any interest in the entity that awarded the order. It further clarified that the order does not fall under related-party transactions.

The order from Reliance was the second order for the company in less than a week. On February 20, it also secured its first railway sector order from RailTel worth ₹89 crore.

The company said it secured an Advance Letter of Authorisation (LOA) from RailTel Corporation of India Ltd, which involves the end-to-end commissioning of IP-based Video Surveillance Systems (VSS) in LHB coaches.

At the end of the quarter ending December, the company's order book stood at ₹8467.8 crore, its Q3 earnings filing showed.

Pace Digitek share price trend

Pace Digitek's performance has been weak since listing, as its shares have witnessed heavy selling in the Indian stock market. The company’s shares made their debut on Dalal Street in early October, listing at ₹225, a 4% premium to the IPO price of ₹219.

The stock has closed lower over the last three months, losing a cumulative 16%. In the current month so far, it has reversed some of its losses, gaining 7.6%. However, the stock is still down 13.5% from the IPO price and 16% from the listing price.

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