Zetwerk Manufacturing Businesses IPO Raises Rs 2,251.23 Crore from Anchor Investors
Zetwerk Manufacturing Businesses, a prominent manufacturing platform, has successfully raised Rs 2,251.23 crore from anchor investors in preparation for its initial public offering (IPO). The company allocated 14.91 crore shares to 99 anchor investors at Rs 151 per share, which is at the top of its IPO price range.
The global institutional investors involved in the anchor book consist of Capital Group, BlackRock, Goldman Sachs, Nomura, Société Générale, Manulife, and Susquehanna. Additionally, significant sovereign wealth funds like Norway’s Government Pension Fund Global and Abu Dhabi Investment Authority (ADIA) took part in this allocation.
On the domestic front, several investors received allocations, including notable mutual funds like SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Mirae Asset Mutual Fund, and Aditya Birla Sun Life Mutual Fund. Insurance companies such as SBI Life Insurance, ICICI Prudential Life Insurance, Bajaj Life Insurance, and Axis Max Life Insurance also engaged in the anchor round.
According to the exchange filing, domestic mutual funds obtained 6.80 crore shares, while seven life insurance companies received 1.10 crore shares.
Details of Zetwerk’s IPO
Zetwerk’s IPO, which amounts to Rs 5,012 crore, is set to commence subscriptions on October 15 and will conclude on October 19. The issue includes a fresh share issuance worth Rs 2,830 crore and an offer for sale (OFS) of up to 14.45 crore shares, valued at Rs 2,182 crore, by existing shareholders.
The Bengaluru-based enterprise has set its IPO price band at Rs 143-151 per share, leading to a valuation of approximately Rs 25,583 crore at the upper limit. A part of the proceeds from the fresh issue is intended for debt repayment, while the remainder will be allocated for acquisitions, strategic investments, and general corporate purposes.
Investment Returns for Early Investors
Zetwerk’s IPO also presents an exit opportunity for its early investors. Kae Capital and Kalysta Capital are anticipated to achieve returns of up to 38X on their investments through the offer for sale (OFS). Lightspeed Venture Partners, the largest selling external shareholder, plans to offload shares worth Rs 426.9 crore, while Peak XV Partners will sell shares valued at Rs 353.5 crore.