Zetwerk Sets IPO Price Band At ₹143-₹151 For ₹5,012 Cr Issue

B2B manufacturing firm Zetwerk has announced a price band of ₹143-₹151 per share for its much-anticipated IPO, setting the stage for an issue size of ₹5,012.3 Cr. The initial capital raising will consist of a fresh issue of ₹2,830 Cr, complemented by an Open Offer (OFS) window that could expand to 14.45 Cr additional shares, valued at ₹2,182.3 Cr at the upper end of the price spectrum. The IPO will officially commence for investor subscription on October 15 and conclude its subscription window on October 19.

Potential investors will be granted an exclusive bidding opportunity on October 14, marking the anchor investor phase. Should Zetwerk's price band prove optimistic, the company anticipates achieving a robust post-IPO market capitalisation of approximately ₹25,583 Cr, equivalent to around $2.7 Bn. The company's decision to raise a larger fresh issue, now set at ₹2,830 Cr, reflects a strategic shift from the initially disclosed amount of ₹2,600 Cr.

The revised Open Offer has also expanded significantly, growing by 49.2% to now encompass 14.45 Cr shares. Prominent shareholders and cofounders Amrit Pratik Acharya and Srinath Ramakkrushnan have each earmarked a limit to sell up to 1.42 Cr shares each. Other notable selling shareholders include Creovate Innovation, a promoter group entity, as well as funds aligned with Peak XV Partners, Accel India, Lightspeed Venture Partners, and Kae Capital.

Zetwerk has outlined a strategic plan for the proceeds raised through the IPO. The company intends to utilize ₹2,160 Cr from the fresh issue to settle or prepay existing borrowings across its own entity and select subsidiaries. The remaining net proceeds from the IPO will be earmarked for strategic acquisitions and to cater to the broader corporate objectives of Zetwerk.

The company previously filed its draft IPO documentation confidentially in March, followed by the Universal Documentation of Rights Issue (UDRHP) in August.