Zetwerk Files IPO Papers with SEBI, Vows to Raise ₹2,600 Cr as Manufacturing Business Surges

Zetwerk Files IPO Papers with SEBI, Vows to Raise ₹2,600 Cr as Manufacturing Business Surges​

Tech-led manufacturing platform Zetwerk Manufacturing Business Ltd has intensified its road to an Initial Public Offering (IPO). The company has officially filed updated papers with the market regulator Sebi, detailing plans to raise Rs 2,600 crore through a fresh issue of shares. This move comes after filing preliminary IPO documentation via the confidential pre-filing route back in March.

The comprehensive IPO structure includes the fresh equity offer alongside an Offer for Sale (OFS). The OFS component allows promoters and existing shareholders to offload up to 9.68 crore shares. Key selling shareholders noted in the updated draft red herring prospectus (UDRHP) include Peak XV, Accel, Lightspeed, and Kae Capital.

IPO Proceeds and Financial Discipline​

Zetwerk has outlined a clear plan for utilizing the substantial fresh proceeds from the public offering. The company plans to dedicate Rs 1,250 crore towards debt repayment at the corporate level. Additionally, Rs 550 crore is earmarked to pare borrowings held by its subsidiaries. The remaining funds are designated for unidentified acquisitions and general corporate purposes.

These allocation details underscore a commitment to strengthening the balance sheet while maintaining growth opportunities. The IPO aims not only to raise capital but also to signal financial discipline in the fast-paced manufacturing sector.

Explosive Growth Drivers Powering Zetwerk’s Expansion​

The underlying business operations at Zetwerk are showing marked signs of explosive growth, signaling significant potential for public listing. Revenue from operations demonstrated a 40.4 per cent jump in FY26, reaching Rs 15,913 crore from the previous year's figure of Rs 11,332 crore.

Financial metrics also show rapid improvement. The company’s adjusted EBITDA more than quadrupled, moving from Rs 97 crore in FY24 to a robust Rs 421 crore in FY26. This sharp performance trajectory positions Zetwerk favorably ahead of its public debut.

Global Footprint and Operational Scope​

Zetwerk operates as a technology-enabled manufacturing network, seamlessly connecting industrial customers with the company's owned facilities and various third-party suppliers. The operational scale is impressive, featuring 26 owned manufacturing facilities strategically located across India, the US, Germany, and Spain.

The global reach of Zetwerk is substantiated by its international operations, as nearly 30 per cent of the manufacturing revenue in FY26 originated from international markets. Furthermore, the company's order book has doubled, growing to Rs 12,370 crore in FY26 from Rs 6,170 crore in FY24.

Market Positioning and Strategic Alliances​

Founded in 2018 by Amrit Pratik Acharya, Srinath Ramakkrushnan, Vishal Chaudhary, Ankit Fatehpuria, and Rahul Sharma, Zetwerk has built a strong base across diverse sectors. Its expertise spans renewable energy, electronics, aerospace, defence, AI infrastructure, oil and gas, and industrial automation.

The company's operational ecosystem is vast, working with 6,979 third-party suppliers globally. Key clients for Zetwerk include major entities such as Siemens Gamesa, L&T MHI Power Boiler, DRDO, Indian Air Force, and Numaligarh Refinery Ltd. The business structure is dual, encompassing Manufacturing Business and the Ecosystem Business, branded Terra91.

Bookrunners and Investor Confidence​

The IPO boasts strong institutional backing, having secured investments from noted entities including Khosla Ventures, Baillie Gifford, Rakesh Gangwal, Accel, Peak XV, and Lightspeed. The book-running lead managers appointed for the issue are a distinguished group of firms. Kotak Mahindra Capital Company, Morgan Stanley India Company, Goldman Sachs India Securities, Avendus Capital, JM Financial, HSBC Securities, and Pantomath Capital Advisors are leading the process.