Zetwerk Manufacturing Businesses IPO Overview

Zetwerk Manufacturing Businesses, known for its manufacturing platform, witnessed an impressive IPO subscription rate of 3.06 times. Investors placed bids for 56.54 crore shares against the 18.50 crore shares available.

IPO Subscription Details

The initial public offering (IPO) for Zetwerk was available for subscription from October 15 to October 19, featuring a price range of Rs 143 to 151, requiring a minimum investment of Rs 14,157 for a lot of 99 shares. According to the information from exchanges, qualified institutional buyers (QIBs) displayed the strongest demand with a subscription rate of 4.73 times. This was followed by non-institutional investors (NIIs) at 1.4 times. The employee category saw a subscription rate of 1.58 times, while the retail portion experienced lower demand at 0.72 times.

Utilization of IPO Proceeds

The red herring prospectus (RHP) indicates that the IPO includes a fresh issue of shares valued at Rs 2,830 crore and an offer for sale (OFS) of up to 14.45 crore shares, equivalent to Rs 2,182 crore from existing stakeholders. A segment of the fresh issue proceeds will be allocated for debt repayment, while the remaining funds will be directed towards acquisitions, strategic investments, and general corporate activities.

Exiting Early Investors

Zetwerk’s IPO will also facilitate an exit strategy for early investors. Kae Capital and Kalysta Capital are expected to gain returns of up to 38 times on their initial investments through the offer for sale (OFS). Lightspeed Venture Partners stands as the largest external shareholder, selling shares worth Rs 426.9 crore, with Peak XV Partners following closely, offloading shares valued at Rs 353.5 crore.

Anchor Investor Participation

Before its IPO, Zetwerk successfully raised Rs 2,251.23 crore from anchor investors, featuring a blend of international investors such as Capital Group, BlackRock, Goldman Sachs, and Nomura, alongside domestic participants including SBI Mutual Fund, ICICI Prudential Mutual Fund, and HDFC Mutual Fund.

Financial Performance

In terms of financial growth, Zetwerk’s revenue from continuing operations surged by 40.4%, reaching Rs 15,913 crore in FY26, up from Rs 11,332 crore in FY25. For Q1 FY27, revenue from operations experienced a year-on-year increase of 55%, hitting Rs 4,118 crore. Moreover, losses from continuing operations significantly decreased by 93%, with figures dropping to Rs 64 crore from Rs 881 crore in the corresponding period last year.