New Delhi, October 12: Leading engineering, procurement, and construction (EPC) and battery energy storage system (BESS) provider Pace Digitek’s board has approved a ₹250 crore debenture issue as it looks to execute its upcoming new contracts without straining day-to-day operations.
This capital injection through debt is aimed at securing structural liquidity to procure raw materials, scale up site execution and meet the working capital demands for these multi-million-dollar orders. As an immediate requirement, Pace Digitek is looking to ramp up its execution momentum for its ₹488.46 crore NTPC GE Power Services BESS Project, besides another ₹179.40 crore orders for which it has signed a Letter of Intent (LOI).
With the demand for clean energy and telecom infrastructure accelerating across India, Pace Digitek is looking to mobilize adequate capital for the emerging requirement. It is looking to match the long term funding requirements to meet the expected project cash flows.
Though this development represents sound future planning, the company could face challenges with debt servicing costs and execution delays during project implementation. Pace Digitek remains a formidable player in the power management, infrastructure, and telecom support sectors, and it will have to work towards addressing project implementation risks while ensuring its business financials remain intact.
