Shares of Pace Digitek made a muted stock market debut on Monday, October 06 as the telecom infra player was listed at Rs 226.85 on BSE, a premium of 3.58 per cent over its issue price of Rs 219 apiece. The stock kicked-off its maiden trading session with a premium of 2.74 per cent over the given issue price at Rs 225 on NSE.
Investors made a profit of Rs 534 on each lot of the company, consisting of 68 shares worth Rs 14,892. However, listing to Pace Digitek has been much below the expected lines. Ahead of its listing, shares of Pace Digitek were commanding a grey market premium (GMP) of Rs 17 per share in the unofficial market, suggesting a listing pop of 7-8 per cent for the investors.
The IPO of Pace Digitek was open for subscription between September 26 and September 30. It had offered its shares in the price band of Rs 208-219 per share with a lot size of 68 shares. The company raised a total of Rs 819.15 crore from its IPO, which was entirely a fresh share sale of 3,74,04,018 equity shares.
The issue was overall subscribed only 1.59 times, fetching nearly 1.85 lakh applications, attracting bids just over Rs 965 crore. The portion for qualified-institutional bidders (QIBs) was subscribed 1.60 times. The allocation for non-institutional investors (NIIs) was booked 2.90 times. The portions for retail investors and employees were subscribed 1.03 times and 1.73 times, respectively.
Incorporated in 2007, Pace Digitek is a multi-disciplinary solutions provider with a primary focus on the telecom infra industry. Pace Digitek, through its subsidiary Lineage Power, offers key products to support telecom tower infrastructure. These include Power Management Solutions such as Switch-mode Power Supply and Hybrid DC Power Systems, as well as solar solutions.
The issue saw limited coverage and brokerage firms, those tracking the issue, were mostly positive on the issue, suggesting to subscribe to it for long-term. Unistone Capital was the sole book running lead manager and MUFG Intime India served as the registrar of the issue.
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