- Price band fixed at ₹143–151; subscription opens October 15 and closes October 19
- Fresh issue of ₹2,830 crore to fund debt repayment, acquisitions and corporate needs
- Promoters and marquee investors to partially monetise holdings through ₹2,182-crore OFS
- From ₹49-crore first-year orders to a manufacturing network spanning four countries
- Gross margin rises to 23% in June quarter; adjusted EBITDA reaches ₹420 crore in FY26
- At least 75% of net offer earmarked for institutional investors; shares proposed to list on BSE and NSE
R MANICKAVASAGAM
AHMEDABAD, OCT 14
Can a manufacturing company build a global industrial empire without owning every factory that produces its customers’ goods? Having proved its mettle in a short span, Zetwerk Manufacturing Businesses Limited is taking this technology-led proposition to the public market with a ₹5,012-crore initial public offering (IPO), testing investor appetite for a business model that connects industrial demand with manufacturing capabilities across multiple sectors.
The IPO opens on Thursday, October 15, and closes on Monday, October 19, with the price band fixed at ₹143–151 per equity share of face value ₹1. The anchor investor bidding date is October 14.
The issue comprises a fresh issue of ₹2,830 crore and an offer for sale (OFS) of up to 14.45 crore shares, valued at approximately ₹2,182 crore at the upper price band. While the fresh issue will bring capital into the company, the OFS proceeds will go to selling shareholders.
From ₹49-crore orders to a global platform
At a media interaction in Ahmedabad, Executive Director and Chief Operating Officer Srinath Ramakkrushnan recalled the company’s modest beginnings.
“Initially, we were working in different companies. After some time, we, IIT Madras Mechanical engineering classmates, have decided to foray into manufacturing without industries of our own. First year we have received orders worth Rs 49 cror only. Slowly it picked up momentum,” he said.
Founded in 2018 by Amrit Pratik Acharya, Srinath Ramakkrushnan, Vishal Chaudhary, Ankit Fatehpuria and Rahul Sharma, Zetwerk operates across renewable energy, electronics, aerospace, defence, AI infrastructure, oil and gas, and industrial automation.
It has 26 owned manufacturing facilities across India, the United States, Germany and Spain, besides working with third-party suppliers internationally. Its customers include Siemens Gamesa, Acer India, CG Power, NTPC Renewable Energy, L&T MHI Power Boiler, DRDO, the Indian Air Force and Numaligarh Refinery Ltd.
Fresh capital versus shareholder exits
The company proposes to use fresh-issue proceeds to repay borrowings of itself and its subsidiaries, pursue unidentified acquisitions and meet general corporate purposes.
Promoters Amrit Pratik Acharya and Srinath Ramakkrushnan, promoter-group entity Creovate Innovation, and investors including Peak XV, Accel, Lightspeed and Kae Capital are among the selling shareholders.
The proposed debt repayment could ease financing costs, while acquisitions may expand capabilities or market access. However, investors will need to assess the company’s borrowings, cash flows, valuation and the intended deployment of funds. The OFS, unlike the fresh issue, does not directly finance the company’s operations.
Margins and earnings show improvement
Zetwerk’s manufacturing-segment gross margin rose from 13% in FY24 to 19% in FY26 and 23% in the June quarter, according to figures provided for the IPO interaction.
Adjusted EBITDA increased from ₹97 crore in FY24 to ₹420 crore in FY26. The improvement points to stronger operating performance, although revenue growth, working-capital requirements, cash generation and reported profitability remain important measures of financial sustainability.
The company operates its manufacturing business alongside its ecosystem business, Terra91. It discontinued its civil infrastructure business in FY26 as part of a strategic realignment. Its investors include Khosla Ventures, Baillie Gifford, Rakesh Gangwal, Accel, Peak XV and Lightspeed.
Institutional investors get at least 75% of net offer
Under the proposed allocation structure, at least 75% of the net offer will be available to Qualified Institutional Buyers (QIBs). Up to 60% of the QIB portion may be allocated to anchor investors. Of the anchor investor portion, 40% is earmarked for specified domestic institutional categories: 33.33% for domestic mutual funds and 6.67% for life insurance companies and pension funds.
Not more than 15% of the net offer will be available to Non-Institutional Bidders (NIBs), while retail individual bidders may receive up to 10%. Eligible employees may also apply under the employee reservation portion, subject to the final offer terms and applicable regulations.
Applications by eligible bidders other than anchor investors must follow the Application Supported by Blocked Amount (ASBA) process, with UPI available to applicable applicants.
BSE, NSE listing; seven lead managers
The equity shares are proposed to be listed on BSE Limited and the National Stock Exchange of India Limited, with NSE designated as the stock exchange for the offer. The listing date should be confirmed through the final issue schedule and exchange announcements.
Kotak Mahindra Capital Company, Morgan Stanley India Company, Goldman Sachs (India) Securities, Avendus Capital, JM Financial, HSBC Securities and Capital Markets (India), and Pantomath Capital Advisors are the book-running lead managers.
Zetwerk’s journey from modest initial orders to a multi-sector manufacturing network offers an ambitious industrial-growth story. The IPO’s longer-term success, however, will depend on whether expanding operations translate into sustainable cash flows, consistent profitability and attractive returns for public shareholders.