Zetwerk Files RHP to Launch IPO on October 15 with Rs 2,830-Crore Fresh Issue

Bengaluru-based contract manufacturing platform Zetwerk Manufacturing Businesses Limited has officially filed its Red Herring Prospectus (RHP) with the Registrar of Companies to launch its initial public offering (IPO) on October 15, 2026.

The public issue will run from October 15 to October 19, with the anchor investor bidding slated to open for a single day on October 14. The company is tentatively eyeing a stock exchange listing on the BSE and the National Stock Exchange (NSE) on October 23, 2026.

Upsized Issue Structure

According to the RHP filing, Zetwerk has upsized both its primary and secondary issue tranches compared to its previously submitted updated draft red herring prospectus (UDRHP):

• Fresh Issue: Scaled up to Rs 2,830 crore, compared to the Rs 2,600 crore proposed earlier.
• Offer for Sale (OFS): Expanded by 49% to 14.45 crore equity shares, up from 9.68 crore equity shares indicated in the draft papers.

Under the OFS component, company co-founders Amrit Pratik Acharya and Srinath Ramakkrushnan will each offload up to 1.42 crore shares, while promoter group vehicle Creovate Innovation will tender up to 2.30 crore shares. Together, the promoter pool is selling roughly 5.14 crore shares.

Institutional venture capital backers are also paring their stakes:

• Lightspeed Venture Partners: Divesting 2.51 crore shares across its entities.
• Peak XV Partners: Offloading 2.34 crore shares.
• Kae Capital and Kalysta Capital: Collectively selling up to 1.67 crore shares.
• Accel India V: Selling up to 1.20 crore shares.

Utilisation of Proceeds

The primary capital raised via the fresh issue will be heavily directed toward deleveraging the company’s consolidated balance sheet:

• Parent Debt Retirement: Rs 1,300 crore has been earmarked for the prepayment or scheduled repayment of borrowings at the company level.
• Subsidiary Debt Repayment: Rs 860 crore will be deployed to pay down debt across nine operating subsidiaries.
• Growth and Corporate Purposes: The remaining balance is slated for strategic acquisitions, investments, and general corporate purposes.

Financial Snapshot

Founded in 2017, Zetwerk operates an asset-light, technology-driven platform that matches industrial customers with contracted manufacturing capacities across sectors such as renewable energy, consumer electronics, aerospace, defence, and precision equipment.

Zetwerk's revenue from continuing operations climbed 40.4% year-on-year to Rs 15,913 crore in FY26, up from Rs 11,332 crore in FY25. Momentum continued into early FY27, with Q1 revenue jumping 55% year-on-year to Rs 4,118 crore. On an operating level, adjusted EBITDA grew to Rs 421 crore in FY26 from Rs 97 crore in FY24, although net losses stood at Rs 1,606 crore in FY26 following exceptional line-item charges.

Kotak Mahindra Capital, Morgan Stanley India, Goldman Sachs (India) Securities, Avendus Capital, and JM Financial are among the lead investment banks handling the public offering, with KFin Technologies acting as the registrar.

Tags: Zetwerk Peak XV Partners Lightspeed Venture Partners Accel India SEBI IPO