Zetwerk files UDRHP, plans ₹2,600-crore fresh issue to repay debt and fuel growth
Zetwerk says about ₹1,800 crore of fresh IPO proceeds earmarked for debt repayment and the balance for acquisitions and general corporate purposes
B2B contract manufacturing firm Zetwerk is expanding its scope beyond its asset-light origins, with energy, defense and AI infrastructure emerging as key growth drivers. The company is set to raise ₹2,600 crore through its initial public offering, as outlined in its updated draft red herring prospectus. Zetwerk's order book for the fiscal year 2026 is projected at ₹12,300 crore, a 40 per cent increase year-on-year, while revenue grew by 40 per cent to ₹15,900 crore.
A significant number of new orders have been won from international markets, particularly the US and Europe. The IPO proceeds will primarily be utilized for debt repayment, with around ₹1,800 crore allocated towards debt repayment, and the remainder for acquisitions and general corporate purposes. The company's manufacturing business generated about ₹9,300 crore of FY26 revenue, with energy accounting for about 70 per cent of the segment.
Precision manufacturing, encompassing electronics and defense, contributed around 15 per cent, while capital goods accounted for 15-16 per cent. Zetwerk has increasingly opted to own manufacturing capacity, operating 26 captive plants, representing about 33 per cent of its manufacturing segment, up from 7 per cent two years ago.
This shift towards in-house capacity is attributed to the difficulty in finding third-party suppliers for complex, high-value manufacturing. The company's customer base is characterized by strong stickiness, with 80 per cent of FY26 revenue coming from repeat customers, while the remaining 20 per cent originated from new customers.
The net revenue retention stands at 120 per cent, indicating that existing customers have increased their spending with Zetwerk. The top 10 customers together account for 36 per cent of revenue. International business has risen to approximately ₹2,800 crore in FY26 from ₹2,300 crore the previous year, despite tariff and geopolitical volatility.
Around 30 per cent of manufacturing revenue now stems from international markets, primarily the US and Europe.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
