Zetwerk IPO priced at ₹143-151 per share in ₹5,012 Cr offering
Zetwerk's ₹5,012.3 crore IPO, priced between ₹143-151 per share, saw 23% subscription on day one. The manufacturing tech startup secured strong anchor backing of ₹2,251.2 crore from funds including BlackRock and Goldman Sachs ahead of the public offer.
Zetwerk Manufacturing's initial public offering is priced between ₹143 and ₹151 per share, seeking to raise ₹5,012.3 crore. The IPO comprises a fresh issue of ₹2,830 crore and an offer for sale of up to 14.45 crore shares, valued at approximately ₹2,182.3 crore at the upper price band, which would value the company at around ₹25,583 crore.
Founded in 2018 by Amrit Acharya, Srinath Ramakkrushnan, and Vishal Chaudhary, Zetwerk operates a full-stack manufacturing platform serving businesses across industrial and consumer goods categories. The company serves sectors including renewable energy, consumer electronics, aerospace, defence, oil and gas, and industrial automation, utilizing a network of third-party suppliers and its own 26 facilities across India, the US, Germany, and Spain.
Anchor Investor Backing
Before the IPO opened to the public, Zetwerk secured ₹2,251.2 crore from anchor investors. Domestic mutual funds, including SBI Mutual Fund and ICICI Prudential Mutual Fund, accounted for roughly 46% of this anchor book allocation. The list of anchor investors is a who's who of global and domestic institutions.
Subscription Performance
On the first day of the subscription period, the IPO was subscribed 23%, with bids received for 4.17 crore shares against the 18.51 crore shares on offer. Demand varied across investor categories, with institutional buyers showing the strongest initial interest.
| Investor Category | Shares Bid Against Quota | Subscription Percentage |
|---|---|---|
| Qualified Institutional Buyers (QIBs) | 2.96 Cr / 9.89 Cr | 30% |
| Retail Individual Investors | 74.32 Lakh / 3.42 Cr | 22% |
| Non-Institutional Investors (NIIs) | 44.08 Lakh / 5.13 Cr | 9% |
| Employees | 1.84 Lakh / 7 Lakh | 26% |
The offer for sale component includes shares sold by promoters Amrit Pratik Acharya and Srinath Ramakkrushnan, as well as by early investors Peak XV Partners, Accel India, Lightspeed Venture Partners, and Kae Capital. Proceeds from the fresh issue will be used for debt repayment, potential acquisitions, and general corporate purposes. The company has raised over $900 million in private funding from investors including Khosla Ventures, Baillie Gifford, Greenoaks Capital Partners, and D1 Capital Partners.
Zetwerk's financials show the scale and challenges of its capital-intensive model. For the first quarter of the current fiscal year, the company reported an operating revenue of ₹4,117.9 crore alongside a consolidated net loss of ₹733 crore. The company operates two key businesses: its core Manufacturing Business and an Ecosystem Business under the brand Terra91, having discontinued its civil infrastructure operations in the previous fiscal year as part of a strategic realignment.
Notable customers on its platform include Siemens Gamesa, Acer India, CG Power, NTPC Renewable Energy, L&T MHI Power Boiler, the Defence Research and Development Organisation (DRDO), the Indian Air Force, and Numaligarh Refinery Ltd. The IPO subscription period closes on October 19.
