Zetwerk IPO Expected to Yield High Returns
Zetwerk’s IPO is anticipated to provide impressive returns, benefiting a number of early investors. Kae Capital and Kalysta Capital are projected to achieve around 38 times their original investments. During the offer for sale (OFS), existing shareholders will divest 14.45 crore shares valued at approximately Rs 2,182 crore.
Key Investors in Zetwerk’s IPO
According to analysis by Startup Superb, Lightspeed Venture Partners stands out as the largest external shareholder participating in Zetwerk’s IPO, planning to sell shares with an estimated value of Rs 426.9 crore. At the upper end of the price range, set at Rs 151 per share, Lightspeed is on track for around 4.5 times returns based on the average buy-in price calculated across its funds. Peak XV Partners is set to sell shares worth Rs 353.5 crore, expecting approximately 9.3 times returns. Additionally, Accel’s share sale worth Rs 181.5 crore is poised to generate about 19.3 times returns.
The average acquisition costs for both Lightspeed and Peak XV have been derived from their respective funds involved in the OFS. Kae Capital plans to divest shares amounting to Rs 189.8 crore through the OFS, aiming for about 38.3 times returns, based on an average acquisition price of Rs 3.94 per share. Kalysta Capital will also release shares valued at Rs 63.3 crore, anticipating similar returns at the peak price range.
Among other stakeholders, the promoter group entity Creovate Innovation will be selling shares valued at Rs 346.9 crore. Given their acquisition cost of Rs 178.58 per share, which exceeds the IPO’s upper price band, they expect a return of nearly 0.85 times on their investment. Zetwerk’s co-founders, Amrit Acharya and Srinath Ramakkrushnan, are each anticipated to liquidate shares worth around Rs 214.9 crore. Additional participants in the OFS include Saifuddin Fakhruddin Qureshi and Matthew Harris Arnold, who plan to sell shares valued at Rs 43.1 crore and Rs 36.9 crore, respectively.
Zetwerk’s IPO Structure
The IPO will consist of a fresh issue of shares valued at Rs 2,830 crore and the aforementioned OFS of 14.45 crore shares. The company aspires to garner around Rs 5,012 crore through this public offering, positioning its valuation at about Rs 25,583 crore at the price range’s upper end. The IPO will commence subscription on October 15 and conclude on October 19, with a listing date set for October 23.
Company Overview
Established in 2017, Zetwerk operates a technology-driven manufacturing platform, connecting enterprises with manufacturers and suppliers across various sectors, including electronics, energy, aerospace, defence, and industrial automation.
Financial Performance
On the financial front, Zetwerk’s revenue from ongoing operations grew to Rs 15,913 crore in FY26, up from Rs 11,332 crore in FY25. In the first quarter of FY27, revenue from operations surged by 55% year-on-year to reach Rs 4,118 crore, while losses from ongoing operations declined to Rs 64 crore from Rs 881 crore in the same quarter the previous year.