Zetwerk Manufacturing Platform Files Red Herring Prospectus for IPO
Zetwerk, a manufacturing platform, has submitted its Red Herring Prospectus (RHP) for an initial public offering (IPO) that features a fresh issue of shares valued at Rs 2,830 crore. According to the RHP, this Bengaluru-based enterprise has adjusted its fresh issue size from Rs 2,600 crore as outlined in the updated draft red herring prospectus (UDRHP).
Details of the Offer for Sale
The offer for sale (OFS) has also been revised upward by 49%, now proposing a total of 14.45 crore shares compared to the previously mentioned 9.68 crore shares in the UDRHP submitted in August. The OFS will include shares from promoters Amrit Pratik Acharya and Srinath Ramakkrushnan, who will each sell 1.42 crore shares. Additionally, the promoter group entity Creovate Innovation is set to offload up to 2.30 crore shares. In total, they will present approximately 5.14 crore shares.
Involvement of Existing Investors
Among the current investors, Lightspeed Venture Partners will unload the highest number of shares, which amounts to 2.51 crore shares. Following them, Peak XV Partners intends to sell 2.34 crore shares. Kae Capital Fund and Kalysta Capital Fund will collectively offer a maximum of 1.67 crore shares. Accel India V will also contribute to the OFS, offloading up to 1.2 crore shares.
Subscription Timeline
The offer will be available for subscription from October 15, 2026 to October 19, 2026, while the anchor bidding will commence on October 14.
Utilisation of Funds
Zetwerk intends to allocate Rs 1,300 crore from the fresh issue for the repayment or prepayment of borrowings at the corporate level. An additional Rs 860 crore is earmarked for settling debts at nine subsidiaries. The remaining funds will go towards acquisitions, strategic investments, and general corporate needs.
About Zetwerk
Founded in 2017 by Acharya and Ramakkrushnan, Zetwerk operates a technology-driven manufacturing platform that serves as a link between businesses and manufacturers in various sectors, including energy, electronics, aerospace, defence, and industrial automation.
Financial Performance
In terms of financial results, Zetwerk’s revenue from continuing operations increased to Rs 15,913 crore in FY26, up from Rs 11,332 crore in FY25. For Q1 FY27, revenue from operations soared by 55% year-on-year to reach Rs 4,118 crore, while losses from continuing operations saw a significant decline of 93%, falling to Rs 64 crore from Rs 881 crore in the same quarter of the previous year.