Pace Digitek Subsidiary Signs MoU for Battery Energy Storage Systems (BESS) Supply

What Happened ?

Key details

Memorandum of Understanding:

• The agreement has been executed through the company’s material subsidiary, Lineage Power Private Limited.
• MoU signed with:
  • Onward Solar Power Private Limited (OSPPL)
  • Kalpa Power Private Limited (KPPL)
• Purpose of the agreement is the supply of:
  • Battery Energy Storage Systems (BESS)
  • DC Blocks
  • Commercial & Industrial (C&I) BESS Cabinets
  • Residential BESS
  • Power Conversion Systems (PCS)
  • Energy Management Systems (EMS)
  • Battery Containers
• Both counterparties are domestic entities.
• The company has no shareholding in either entity.
• There is no promoter or promoter group relationship with the counterparties.
• The agreement does not qualify as a related-party transaction.
• Commercial consideration will be governed by the terms of the Memorandum of Understanding.

Note:

• The filing discloses the execution of an MoU only. No financial value, execution timeline or revenue commitment has been disclosed at this stage.

Risk Analysis

Summary:

• Since the disclosure relates to an MoU rather than a definitive purchase order, the commercial benefits will depend on the execution of future contracts and successful implementation.

Key Risks:

• No contract value or revenue visibility has been disclosed.
• MoUs are generally non-final commercial arrangements and may lead to future definitive agreements.
• Revenue generation depends on subsequent purchase orders and execution.
• Demand for BESS projects may vary with market conditions and customer requirements.

Worst Case:

• If the MoU does not translate into firm commercial orders, the agreement may have limited financial impact on the company’s earnings.

Risk Level: Medium

Company Commentary

• Lineage Power Private Limited, a material subsidiary of Pace Digitek, has executed an MoU with Onward Solar Power Private Limited and Kalpa Power Private Limited.
• The agreement covers the supply of integrated Battery Energy Storage Systems (BESS) and associated equipment.
• Both counterparties are domestic entities.
• The company confirmed that there is no promoter interest, no shareholding and no related-party transactioninvolved.
• The disclosure has been made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.