IPO Alert: A big IPO is coming after a long time, shares will be listed on both the exchanges

Bangalore-based company Pace Digitek has filed a draft red herring prospectus (DRHP) with securities market regulator SEBI to raise Rs 900 crore through its initial public offering (IPO). This IPO is an issue of completely new shares with a face value of Rs 2 per share. The company will use the funds raised from this IPO to expand its business and for general needs.

The company said that it may consider issuing equity shares up to Rs 180 crore through pre-IPO placement before the IPO. If this placement is successful, it will be deducted from the funds raised from the new issue of IPO. Where will the funds raised from the IPO be used? 50% of the IPO is reserved for qualified institutional buyers (QIB), 15% for non-institutional investors and the remaining 35% for retail investors. Pace Digitek will use Rs 630 crore of the IPO proceeds to meet capital expenditure requirements. The remaining amount will be used for general corporate purposes. Increase in income and profits Pace Digitek operates in the telecom passive infrastructure industry and specializes in telecom tower infrastructure and optical fiber cables. Its business is spread across sectors such as telecom, energy, communication and technology. The company's income was ₹503 crore in the financial year 2023, which increased to ₹2,434 crore in the financial year 2024. Similarly, the profit increased from ₹16.53 crore to ₹229.87 crore. In the six months ended 30 September 2024, the company's income from operations was ₹1,188 crore and profit was ₹152 crore. The book-running lead manager (BRLM) for this IPO is Unistone Capital. At the same time, MUFG Intime India is the registrar of this issue. The company's shares are planned to be listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

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