Zetwerk IPO is a book-built issue worth ₹5,012.33 crore, comprising a fresh issue of 18.75 crore shares valued at ₹2,830 crore and an offer for sale (OFS) of 14.45 crore shares amounting to ₹2,182.33 crore. The IPO will remain open for subscription from October 15 to October 19, 2026. The allotment is expected to be finalized on October 21, 2026, while the shares are scheduled to list on the NSE and BSE on October 23, 2026.
The company has fixed the price band at ₹143–₹151 per share, with a lot size of 99 shares. Retail investors must apply for at least one lot, requiring a minimum investment of ₹14,949 at the upper end of the price band.
The issue also reserves up to 7,00,000 shares for eligible employees at a discount of ₹14 per share to the issue price. Kotak Mahindra Capital Company Ltd. is the book-running lead manager, while KFin Technologies Ltd. serves as the registrar for the IPO. Investors can refer to the Zetwerk Manufacturing Business IPO Red Herring Prospectus (RHP) for detailed information about the company and the offer.
Company Overview
Incorporated in 2017, Zetwerk Manufacturing Businesses Private Limited operates a technology-driven global manufacturing platform that connects businesses with manufacturing partners for customized and large-scale production. The company serves startups and established enterprises across sectors such as electronics, renewable energy, aerospace and defence, artificial intelligence infrastructure, oil and gas, utilities, and industrial automation.
Zetwerk follows an asset-light business model, offering integrated services covering product design, supplier selection, quality assurance, and logistics. Its proprietary technology platform, Zetwerk OS, provides visibility and tracking throughout the manufacturing process. The company focuses on delivering scalable production capabilities, maintaining quality standards, and meeting customer delivery requirements.
With operations spanning more than 25 countries, Zetwerk has established a network of over 10,000 suppliers and serves more than 1,100 customers, including Fortune 500 companies. Its manufacturing infrastructure includes over 20 facilities across India, the United States, and Mexico, supporting its international operations and diverse production requirements.
The company caters to multiple industrial segments, including precision manufacturing and capital goods, alongside its core electronics and energy businesses. In fiscal year 2026, Zetwerk served 1,802 customers, comprising 1,613 domestic customers and 189 international customers, reflecting its presence in both Indian and overseas markets.
IPO Details
| Particulars | Details |
|---|---|
| IPO Date | 15 to 19 Oct, 2026 |
| Allotment | Wed, Oct 21, 2026 |
| Listing Date | Fri, Oct 23, 2026 |
| Face Value | ₹1 per share |
| Price Band | ₹143 to ₹151 per share |
| Sale Type | Fresh capital cum OFS |
| Issue Type | Bookbuilding IPO |
| Total Issue Size | 33,20,07,155 shares (agg. up to ₹5,012 Cr) |
| Fresh Issue | 18,74,82,119 shares (agg. up to ₹2,830 Cr) |
| Offer for Sale | 14,45,25,036 shares of ₹1 (agg. up to ₹2,182 Cr) |
| Employee Discount | ₹14.00 per share |
| Shareholding Pre-Issue | 1,50,67,72,659 shares |
| Shareholding Post-Issue | 1,69,42,54,778 shares |
| Listing Exchange | BSE, NSE |
(Compiled from RHP and market updates)
Industry Context
- Fragmented manufacturing ecosystem: Manufacturing capacity is spread across multiple suppliers and facilities, creating challenges and opportunities for coordinated procurement platforms
- Growing renewable energy demand: Solar, wind and other clean-energy projects require large volumes of industrial components, creating opportunities for manufacturers and coordinated procurement platforms.
- Expansion of AI infrastructure: Data centres and artificial intelligence infrastructure require specialised equipment, including power transformers and other industrial components, supporting demand for manufacturing services.
- Defence and aerospace opportunities: Increasing requirements for specialised engineering, precision components and complex manufacturing create opportunities for suppliers serving defence, aerospace and space-related industries.
- Technology-led manufacturing: Digital platforms can improve supplier selection, production planning, quality monitoring and logistics coordination, helping businesses manage complex manufacturing programmes across multiple locations.
Business Strengths
- Zetwerk combines third-party manufacturing capacity with its own facilities, enabling it to coordinate production across suppliers without owning all the manufacturing infrastructure.
- Zetwerk OS supports supplier selection, production planning, order management, quality control and logistics, improving coordination across the manufacturing lifecycle.
- The company serves energy, precision products, capital goods, electronics, defence and other industrial sectors, reducing dependence on a single end-market.
- Its suppliers operate across multiple manufacturing geographies, allowing the company to distribute orders across facilities and access varied production capabilities.
- Zetwerk serves businesses across different sizes and industries, including recognised industrial and consumer brands, supporting its ability to handle complex manufacturing requirements.
Business Risks
- The top 10 suppliers accounted for 38.18% of total expenses in FY2026, exposing operations to potential supply disruptions, quality issues and delivery delays.
- The top 10 customers contributed 35.90% of revenue in FY2026, making financial performance vulnerable to reduced orders or the loss of major customers.
- Zetwerk reported negative operating cash flow of ₹681.53 crore in FY2026, highlighting potential challenges in generating cash from business operations.
- The company operates in competitive manufacturing markets where pricing, delivery performance, quality standards and supplier capabilities can influence customer retention and profitability.
- The company and its subsidiaries had consolidated outstanding borrowings of ₹5,208.07 crore as of August 31, 2026, creating financing obligations and exposure to funding requirements.
Financial Performance
Zetwerk Manufacturing Business Ltd. – Financials (₹ in Million)
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
|---|---|---|---|
| Revenue from Operations | 1,59,133.23 | 1,13,318.56 | 1,23,643.72 |
| Other Income | 1,873.09 | 1,603.72 | 1,590.85 |
| Adjusted EBITDA | 4,213.35 | 3,225.88 | 970.25 |
| Adjusted EBITDA Margin (%) | 2.65% | 2.85% | 0.78% |
| Restated EPS Basic (in ₹) | (6.69) | (1.17) | (4.86) |
| Return on Net Worth (%) | (21.11%) | (4.76%) | (21.00%) |
(Source: RHP)
Key Ratios & Metrics
| KPI | Jun 30, 2026 | Mar 31, 2026 |
|---|---|---|
| Return on Net Worth (RoNW) | -1.74% | -21.11% |
| Net Asset Value (NAV per share) | ₹25.85 | ₹31.26 |
(Source: RHP)
Objects of the Offer
- Repayment of Borrowings: The net proceeds will be used to repay or prepay certain outstanding borrowings of the company and its specified subsidiaries.
- Inorganic Growth: A portion of the net proceeds will be allocated towards funding unidentified inorganic acquisitions and other strategic acquisitions.
- General Corporate Purposes: The remaining proceeds will be used for general corporate purposes, subject to applicable regulatory limits.
Conclusion
Zetwerk IPO offers investors exposure to a technology-driven global manufacturing platform serving diverse industries, including renewable energy, electronics, aerospace and industrial equipment. The company plans to utilise the IPO proceeds primarily for debt repayment, strategic acquisitions and general corporate purposes.
However, investors should carefully evaluate its financial performance, cash flow position, borrowings, customer and supplier concentration, and competitive environment before making an investment decision. A thorough review of the company’s financials and IPO valuation is essential before subscribing.
Disclaimer: Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. This content is purely for informational purposes only and should not be considered as investment advice or a recommendation. Securities quoted are for illustration purposes only and not recommendatory.Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO.
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