Zetwerk Manufacturing Businesses Attracts Global Investors for IPO

Zetwerk Manufacturing Businesses has successfully drawn in a diverse mix of international asset managers, sovereign wealth funds, and local institutions to its Rs 2,251 crore anchor segment prior to its initial public offering, commonly known as IPO. One prominent participant is Capital Group, which includes two of its divisions — Capital Research and Capital World — receiving allocations worth approximately Rs 288 crore, comprising about 12.88% of the overall anchor fund. This US-based asset manager ranks among the largest active investment managers worldwide, making its involvement a significant element of Zetwerk’s anchor allocation.

The anchor tranche also attracted investments from 3P India Equity Fund, established by well-regarded investor Prashant Jain, who previously led investments at HDFC Mutual Fund for nearly thirty years. His participation highlights the strong local investor interest in Zetwerk’s IPO.

Additionally, numerous esteemed global investment firms participated in the round, including BlackRock, Goldman Sachs, Nomura, Société Générale, First State, Loomis Sayles, Manulife, Carmignac, Eastspring Investments, Susquehanna, and Prudential Assurance. Sovereign wealth funds, notably Norway’s Government Pension Fund Global and the Abu Dhabi Investment Authority (ADIA), also engaged in the anchor book. Both of these institutions are long-term investors, diversifying their portfolios across various markets and asset classes.

The company allocated 14.91 crore equity shares to 99 anchor investors at Rs 151 each, which is the upper limit of its price range. The anchor book represents approximately 45% of its Rs 5,012 crore IPO.

Domestic institutions claimed a considerable segment of the allocation as well. Twenty-two mutual funds received about 45.6% of the anchor book, amounting to roughly Rs 1,027 crore. Notable participants in this category included SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, UTI Mutual Fund, Mirae Asset, and Franklin Templeton. Additionally, seven life insurance companies, including SBI Life Insurance, ICICI Prudential Life Insurance, and Axis Max Life Insurance, also took part.

The extensive participation is remarkable as global asset managers, sovereign wealth funds, mutual funds, and insurers each adhere to distinct investment mandates and evaluate risks differently. Their engagement before the public offering, at the upper limit of the price range, indicates a strong institutional interest in Zetwerk’s IPO.

Zetwerk’s IPO consists of a fresh issuance of Rs 2,830 crore along with an offer for sale (OFS) of 14.45 crore shares valued around Rs 2,182 crore.

Founded in 2018, Zetwerk runs a manufacturing platform catering to industries such as renewable energy, consumer electronics, aerospace, defence, and industrial automation. The company’s revenue from operations surged by 55.4% year-on-year, reaching Rs 4,118 crore in Q1 FY27, while losses from ongoing operations were reduced to Rs 64.1 crore. Zetwerk is supported by investors including Khosla Ventures, Greenoaks, Baillie Gifford, Rakesh Gangwal, Accel, Peak XV, and Lightspeed.