Bengaluru-based Pace Digitek’s Chairman and MD, Venugopal Rao Maddisetty, said the company is channelling a major share of its ₹800-crore IPO proceeds into the fast-growing battery energy storage segment.

With 1,500 MWh of capacity under development in Maharashtra, the company expects a 14% internal rate of return (IRR) and improved margins through strong backward integration.

Below are the edited excerpts from the interview.

Q: We understand your business a little bit from the red herring prospectus. What we really want to know is, this over ₹800 crore issue that you have — ₹600 crore will actually be deployed towards your energy segment. What will be the return on the capital that you invest in this business? What kind of asset turns are we expecting, and how big do you expect this ba

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