Pace Digitek Surge: ₹99 Crore Battery Storage Deal Sparks Investor Excitement!

Pace Digitek Ltd announced that its subsidiary, Lineage Power Private Ltd, has received a substantial order worth ₹99.71 crore from Advait Greenergy Private Ltd.

New Order Details

• The contract is for the supply of lithium iron phosphate (LFP) battery energy storage systems and other related equipment.
• The order was placed by a domestic entity, Advait Greenergy Private Ltd.
• The delivery basis specified in the purchase order is Delivered At Place (DAP).

Timeline and Milestones

• Initial delivery is required within 102 days from the effective date.
• Subsequent deliveries are to be completed within 31 days after the first shipment, for a total delivery schedule of 133 days.
• According to the buyer's schedule, the first 50% of the Battery Energy Storage System (BESS) DC block supplies must be completed by March 15, 2026.
• The remaining system must be supplied by April 15, 2026.

Company Background

• Pace Digitek, incorporated in 2007, is a multi-disciplinary solutions provider.
• The company specializes in the telecom passive infrastructure industry, including telecom tower infrastructure and optical fibre cables.

Stock Performance

• Shares of Pace Digitek Ltd closed at ₹211.19 on December 3, marking a marginal increase of 0.16% on the NSE.

Importance of the Event

• Securing this significant order enhances Pace Digitek's revenue streams and strengthens its presence in the vital energy storage solutions market.
• It demonstrates the company's capability to undertake large-scale projects in both the energy and telecom sectors.

Future Expectations

• The order is anticipated to contribute positively to Lineage Power Private Ltd's financial performance in the upcoming fiscal years.
• It may open doors for further collaborations and larger projects within the renewable energy and storage infrastructure domain.

Impact

• This development is likely to be viewed favorably by investors, highlighting the company's growth trajectory and expansion into critical energy infrastructure.
• It reinforces Pace Digitek's strategic diversification beyond its core telecom infrastructure business.

Impact Rating: 7/10

Difficult Terms Explained

• Lithium Iron Phosphate (LFP) Battery: A type of rechargeable battery using lithium iron phosphate as the cathode material. Known for safety, long life, and thermal stability, ideal for energy storage.
• Battery Energy Storage System (BESS): A system designed to capture energy from sources like the grid or renewables, store it, and supply it when needed, crucial for grid stability and managing power.
• DAP (Delivered At Place): An international trade term where the seller delivers goods to the buyer at an agreed destination, cleared for import and ready for unloading. The seller bears all risks and costs associated with this delivery.
• DC block: Refers to the direct current (DC) components within a Battery Energy Storage System, prior to conversion to alternating current (AC).