Zetwerk Files UDRHP for Massive IPO as Technology Firm Eyes Rs 2,600 Crore Fresh Issue Raise

Zetwerk Files UDRHP for Massive IPO as Technology Firm Eyes Rs 2,600 Crore Fresh Issue Raise​

Technology-led contract manufacturing platform Zetwerk is aggressively advancing its Initial Public Offering (IPO), having filed an Updated Draft Red Herring Prospectus (UDRHP) on August 13. The filing marks a significant step toward the company's proposed listing, aiming to raise up to Rs 2,600 crore through a fresh issue.

The IPO documents were previously submitted to the Securities and Exchange Board of India (SEBI) in April 2026 under confidential filing. SEBI granted clearance on July 9, allowing Zetwerk to confidently proceed with its planned public offering. The company will also have an Offer For Sale (OFS) component comprising up to 96,837,455 equity shares for existing shareholders.

Funding Strategy and Debt Repayment Plans​

Zetwerk has outlined a clear utilization plan for the funds raised through the fresh issue. A portion of the proceeds will be dedicated to crucial debt repayment, amounting to Rs 1,250 crore at the company level. An additional Rs 550 crore is earmarked for borrowings at its subsidiaries.

The remaining IPO capital will be allocated towards general corporate purposes and unidentified acquisitions. This structured approach indicates a focus on both financial stability and strategic expansion in the coming period.

Stellar Revenue Growth Drives Operations​

Zetwerk reported robust operational growth, with revenue from operations climbing by 40.43%. The company's FY26 operating revenue stood at Rs 15,913 crore, up from Rs 11,332 crore in the preceding fiscal year.

This substantial increase is directly attributed to strong performance across renewable energy, power transmission segments and AI infrastructure. Furthermore, Zetwerk’s manufacturing order book has doubled, reaching Rs 12,370 crore in FY26 from Rs 6,170 crore in FY24. International markets contributed nearly 30% of this manufacturing revenue.

Financial Performance and Profitability Indicators​

The company demonstrated strong progress in profitability metrics. Adjusted EBITDA saw a considerable rise, escalating by 4.3 times to Rs 421 crore from Rs 97 crore in FY24. Adjusted PBT also turned positive, reaching Rs 45.7 crore after reporting a loss of Rs 248.8 crore in FY24.

Despite these strong operational indicators, the reported PBT for FY26 stood at a loss of Rs 1,558 crore. This loss was primarily influenced by a Rs 796-crore non-cash management stock-options equity top-up and a Rs 453-crore provision related to its discontinued civil infrastructure business.

Key Shareholders Participating in Offer For Sale​

The Offer for Sale comprises up to 96.84 million shares, with participation from several key entities. Promoters Amrit Pratik Acharya and Srinath Ramakkrushnan are set to offer up to 14.23 million shares each. Creovate Innovation Pvt Ltd, a promoter group entity, will contribute up to 22.97 million shares.

Major investor selling shareholders include Peak XV Partners Investments V (8.44 million shares), Accel India V (Mauritius) (7.16 million shares), and Lightspeed Venture Partners Select IV Mauritius (4.39 million shares). The shareholder base is diverse, including various international venture capital firms.

Pre-IPO Placement Potential and Company Footprint​

Zetwerk may also undertake a pre-IPO placement of up to Rs 520 crore before the RHP filing with the Registrar of Companies. If this placement materializes, the amount targeted through the fresh issue will be adjusted accordingly.

Founded by Amrit Pratik Acharya and Srinath Ramakkrushnan, Zetwerk operates through 26 owned manufacturing facilities. These facilities are strategically located across India, the US, Germany and Spain. The company maintains a robust network connecting these sites with 6,979 third-party suppliers globally.