Zetwerk sets IPO valuation at Rs.25,583 crore after enlarging issue

what happened

Newsmetry API, citing Mint, reported that Zetwerk Manufacturing Businesses Ltd is seeking a Rs.25,583 crore ($3.2 billion) valuation through its IPO. The B2B manufacturing platform is backed by Peak XV Partners and Accel India. Its latest funding round in March valued the company at Rs.27,000 crore post-money; that figure also included approximately Rs.1,500 crore earmarked for an employee stock ownership plan.

The offering will carry a price range of Rs.143 to Rs.151 per share and will be open from 15 October to 19 October 2026. Zetwerk has expanded the IPO to Rs.5,012 crore, lifting the fresh issue to Rs.2,830 crore from Rs.2,600 crore in its August UDRHP. The offer for sale has also grown to 145 million shares from 97 million. Co-founder and chief executive Amrit Acharya and co-promoter Srinath Ramakkrushnan will each sell 14.2 million shares. Creovate Innovation, a promoter-group entity, will offer 23 million shares. Lightspeed Venture Partners and Peak XV Partners will each sell more than 20 million shares, while Kae Capital, Kalysta Capital and Accel India will together sell close to 30 million.

The company plans to devote Rs.2,160 crore of the new capital to debt reduction, with the balance earmarked for inorganic expansion and general corporate purposes. Acharya told Mint that the post-listing strategy will remain focused on the existing business rather than speculative opportunities. Repeat customers account for 85–90% of revenue and spend 130% more on average than they did the previous year. Zetwerk’s June-quarter net loss narrowed to Rs.733 crore from Rs.1,368 crore a year earlier, while revenue climbed 55% to Rs.4,118 crore from Rs.2,649 crore. For FY26, revenue rose to Rs.15,913 crore from Rs.11,332 crore, but the annual net loss widened to Rs.1,606 crore from Rs.371 crore. Acharya said operating margins had improved to about 2.5–3% from roughly 1% in FY24; over the two-year period, revenue increased by about 40% and operating profit quadrupled.

The IPO follows the full write-off and discontinuation of Zetwerk’s non-core civil infrastructure operation. The company is seeking buyers, although the eventual valuation and sale consideration have not been finalized. At the end of June, the unit had Rs.810 crore of assets classified as held for sale and Rs.1,347 crore of liabilities. Mint reported on 10 October that more than 30 overseas and domestic investors were considering the anchor book, including Abu Dhabi Investment Authority (ADIA), Norway’s central bank and the asset-management arms of Goldman Sachs, State Bank of India and HDFC. The article was published by HT Digital Content Services with permission from MINT.

why it matters

The proposed valuation, larger secondary sale, debt-reduction plan and continued losses are key factors for investors assessing the structure and financial profile of the offering.

instruments