Zetwerk’s Updated Draft Red Herring Prospectus Filing

Manufacturing platform Zetwerk has submitted its Updated Draft Red Herring Prospectus to the Securities and Exchange Board of India (SEBI), taking significant strides towards its planned public listing. The Bengaluru-based firm seeks to secure up to Rs 2,600 crore through a new issue, while current shareholders aim to sell approximately 9.68 crore shares via an offer for sale (OFS). The final amount for the OFS will be determined subsequently based on the IPO pricing.

Interestingly, promoters and associated group entities will represent around 53% of the total OFS. Co-founders Amrit Acharya and Srinath Ramakkrushnan will each be offloading up to 1.42 crore shares, and the promoter group entity Creovate Innovation plans to sell up to 2.3 crore shares. Collectively, they will make available around 5.14 crore shares.

Other investors, such as Peak XV Partners, Accel India, Lightspeed Venture Partners, and Kae Capital, are also preparing to liquidate shares as part of the IPO process.

Zetwerk might additionally raise up to Rs 520 crore through a pre-IPO placement before finalising its Red Herring Prospectus. Should this occur, the funds raised will be subtracted from the fresh issue amount.

A large portion of the proceeds from the new issue is intended for debt reduction. The company has allocated Rs 1,250 crore for the repayment or prepayment of borrowings at its corporate level and an additional Rs 550 crore for addressing debt in various subsidiaries. The remaining funds will be directed towards acquisitions and other corporate activities.

In its ongoing operations, Zetwerk reported a revenue of Rs 15,913 crore in FY26, an increase from Rs 11,332 crore in FY25. Its adjusted EBITDA rose to Rs 421 crore from Rs 323 crore, and the adjusted EBITDA margin was recorded at 2.65%.