Zetwerk IPO Sees Strong Retail and Institutional Demand
Zetwerk's ₹5,012.3 crore IPO was subscribed 31% on its second day, with retail and institutional investors showing robust interest as the company's financial losses narrow.
Zetwerk's ₹5,012.3 crore initial public offering was subscribed 31% on the second day of bidding, with qualified institutional buyers subscribing to 37% of their allocation. The IPO, which opened on October 15, 2026, and closes on October 19, saw subscription rise from 0.23 times on the first day to 0.31 times by October 16. Bids were received for 5.75 crore shares against the 18.51 crore shares on offer as of 5:00 PM IST on the second day, with 1,06,546 applications recorded.
Retail and institutional demand
Retail subscription jumped from 0.23 times to 0.37 times between the first and second day. Both retail investors and qualified institutional buyers had each subscribed to 37% of their respective quotas by October 16. Non-institutional investor participation rose from 0.09 times to 0.17 times over the same period. The employee portion, reserved for 7,00,000 shares offered at a discount, was subscribed 0.48 times.
| Investor Category | Shares Reserved | Bids Received (Shares) | Subscription (Times) |
|---|---|---|---|
| QIB | 9.89 Cr | 3.66 Cr | 0.37x |
| NII | 5.12 Cr | 83.66 Lakh | 0.17x |
| Retail | 3.41 Cr | 1.21 Cr | 0.36x |
| Employee | 7.00 Lakh | 3.38 Lakh | 0.48x |
Anchor investor backing
Ahead of the public issue, Zetwerk secured strong backing from anchor investors, raising ₹2,251.2 crore. Domestic mutual funds accounted for 46% of this anchor book. Global institutional investors including Goldman Sachs, BlackRock, and the Abu Dhabi Investment Authority also participated. This anchor allocation is excluded from the overall public subscription calculation.
Financial performance context
The offering comes as Zetwerk shows improving financial metrics. For the first quarter of fiscal year 2026, the company reported a 55.4% rise in operating revenue from continuing operations to ₹4,117.9 crore, up from ₹2,649.4 crore. Its net loss narrowed by 46.4% to ₹733 crore from ₹1,368.5 crore in the year-ago period. The latest quarterly loss of ₹733 crore included ₹668.9 crore from discontinued operations and ₹64.1 crore from continuing operations.
The ₹5,012.33 crore bookbuilding issue comprises a fresh issue of shares aggregating to ₹2,830 crore and an offer for sale of up to 14.45 crore shares worth approximately ₹2,182.33 crore at the upper end of the ₹143 to ₹151 price band. The net offer to the public is divided with 75% allocated to qualified institutional buyers, 15% to non-institutional investors, and 10% to retail investors. Founded in 2018, Zetwerk operates a full-stack manufacturing platform serving sectors including renewable energy, consumer electronics, aerospace, defence, oil and gas, and industrial automation. The company has raised over $900 million in funding to date from investors like Peak XV Partners, Lightspeed Venture Partners, Accel India, Greenoaks Capital Partners, and D1 Capital Partners. The basis of allotment is scheduled for October 21, 2026, with refunds and credit of shares expected on October 22 and a tentative listing on the BSE and NSE set for October 23.
