Zetwerk lists in India with muted demand and a thin grey market premium

what happened

Zetwerk Manufacturing Business shares make their stock market debut on Friday, October 23. The company raised over ₹5,000 crore in its IPO at the upper end of the price band. According to TradingView, citing InvestorGain's update of October 22, the grey market premium stands at just ₹1, which implies a listing price near ₹152, or about 0.66% above the issue price.

The offer closed on October 19 with an overall subscription of 3.06 times. Qualified institutional buyers led demand, subscribing their portion 4.73 times. Non-institutional investors bid 1.40 times the shares on offer, while retail investors bid 0.73 times. The issue combined a fresh issue of ₹2,830 crore with an offer for sale of ₹2,182 crore. The price band was ₹143-151 per share, a lot comprised 99 shares, and the minimum retail investment at the upper end was ₹14,949.

The post-issue market capitalisation is targeted at around ₹25,582 crore. Of the fresh issue proceeds, ₹2,160 crore will repay borrowings of the company and certain subsidiaries, with the rest earmarked for acquisitions and general corporate purposes. Revenue for FY26 rose to ₹15,913 crore from ₹11,332 crore, but the net loss widened to ₹991 crore from ₹210 crore, and the EBITDA margin narrowed to 2.1% from 2.5%. SBI Securities has a 'Subscribe for Long Term' rating on the stock.

why it matters

The grey market premium is an unofficial gauge of investor sentiment. Exchanges do not regulate it, it does not guarantee the listing price, and it can shift before trading begins. Weak retail demand alongside strong institutional interest, plus a wider loss and a lower EBITDA margin, set a cautious tone for the first session.

market impact

Indian IPO market and Zetwerk shares: modest expectations for the first trading day, with no clear premium to the issue price.

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