Zetwerk Files UDRHP For ₹2,600 Cr IPO

B2B manufacturing firm Zetwerk has recently submitted its updated draft red herring prospectus (UDRHP) for a ₹2,600 crore Initial Public Offering (IPO) to India's Securities and Exchange Board (SEBI). The IPO comprises a fresh issuance of shares worth ₹2,600 crore and an Offer-for-Sale (OFS) component of up to 9.6 crore equity shares, which will enable current investors such as Peak XV Partners, Lightspeed Venture Partners, and Kae Capital to partially sell their holdings.

Zetwerk's founders, Amrit Acharya and Srinath Ramakkrushnan, will also offload 1.4 crore equity shares each. About 69% of the fresh issue, approximately ₹1,800 crore, will be used to repay or prepay existing borrowings, while the remaining proceeds will be allocated towards acquisitions and general corporate purposes. This IPO follows Zetwerk's pre-IPO funding of ₹500 crore from Bharat Value Fund and was granted SEBI approval in July, after its confidential filing in March.

The company, established in 2018, provides a full-stack manufacturing platform for clients in industries like industrial components, electronics, renewable energy equipment, and consumer hardware. Operating across more than 26 factories in India, the US, Germany, and Spain, Zetwerk is backed by investors such as Peak XV Partners, Lightspeed, and Mars Growth Capital, with total funding exceeding $700 million since its $150 million Series B round in 2021.

For the fiscal year 2026, Zetwerk reported a revenue from operations increase of over 40%, reaching ₹15,913.3 crore, compared to ₹11,300 crore in the previous year, driven primarily by manufacturing activities. However, the company's net loss widened to ₹1,606.1 crore, primarily due to provisions related to the discontinuation of civil infrastructure business and accounting charges for increased founder ownership.