Zetwerk Manufacturing Businesses Achieves Strong Debut on Stock Exchanges

Bengaluru-based Zetwerk Manufacturing Businesses showcased a positive performance on the stock exchanges on Friday, marking a 5.5% increase in its shares compared to the initial public offering (IPO) price. Exchange data indicated that the company’s shares started trading at Rs 159.25 on the National Stock Exchange (NSE), compared to the IPO price of Rs 151 per share.

IPO Demand Insights

On the final day of the IPO, the qualified institutional buyers (QIBs) segment attracted the most interest, recording a 4.73X subscription rate. This was followed by non-institutional investors (NIIs), who subscribed at a rate of 1.4X. The employee allocation experienced a subscription rate of 1.58X, while the retail portion faced slower demand, achieving a subscription of 0.72X.

Funding and Use of Proceeds

Prior to the IPO, Zetwerk successfully raised Rs 2,251 crore from anchor investors, which included notable global entities such as Capital Group, BlackRock, Goldman Sachs, and Nomura, alongside domestic investors like SBI Mutual Fund, ICICI Prudential Mutual Fund, and HDFC Mutual Fund. According to the company’s Red Herring Prospectus (RHP), the offering consists of a fresh issue of shares amounting to Rs 2,830 crore and an offer for sale (OFS) encompassing up to 14.45 crore shares valued at Rs 2,182 crore by current shareholders.

Financial Performance Overview

In terms of financial performance, Zetwerk’s revenue from continuing operations escalated by 40.4% 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, reaching Rs 4,118 crore. Meanwhile, losses from continuing operations reduced significantly, narrowing by 93% to Rs 64 crore from Rs 881 crore in the previous year.