Zetwerk eyes manufacturing demand from AI, clean energy as shares debut

Zetwerk, a business-to-business manufacturing platform, seeks to capitalize on the growing demand for components and equipment utilized in AI infrastructure, clean energy, and space projects, as disclosed by its founder and CEO Amrit Acharya during the company's stock market debut. Speaking at the listing ceremony, Acharya highlighted the crucial role of manufacturing in these sectors, stating, "Clean energy requires manufacturing. AI requires manufacturing. Space requires manufacturing."

The company's shares opened at Rs 159 on the BSE, representing a 5.3% premium to the issue price of Rs 151, and at Rs 159.25 on the NSE. However, the stock soon shed its early gains, trading closer to the offer price amid a broader market downturn. Zetwerk's IPO, valued at Rs 25,583 crore, encompassed a fresh issue of Rs 2,830 crore and an offer for sale of Rs 2,182 crore by existing shareholders.

The company allocated Rs 2,160 crore, or 76% of the fresh issue, to settle debts of the parent company and nine subsidiaries. The remaining capital, excluding issue expenses, was earmarked for acquisitions and general corporate purposes.

Zetwerk's IPO received strong interest, being subscribed 3.06 times. Institutional investors placed bids for 4.73 times their allocation, while retail investors covered 73% of the shares reserved for them. The company's manufacturing network comprises 26 facilities, which contributed 33.2% of manufacturing revenue in fiscal year 2026, up from 7.1% two years prior.

Cofounder and Chief Operating Officer Srinath Ramakkrushnan expressed Zetwerk's ambition to become a trusted partner for global manufacturing supply chains in India. Co-founder and Chief Operating Officer Srinath Ramakkrushnan further shared that the founders were backed by their respective spouses in 2017 with small personal contributions, having met through their common association at ITC.

Rangrass, referring to the founders, said, "I left ITC three years earlier than I otherwise would have. I thought I would devote my time to these people and several others." In fiscal year 2026, Zetwerk's operating revenue grew by 40% to Rs 15,913 crore, with June-quarter revenue surging 55% year-on-year to Rs 4,118 crore. However, the company reported a net loss of Rs 733 crore, with the loss stemming from the discontinued civil infrastructure business, which alone incurred a Rs 669 crore loss. The remaining business suffered a Rs 64 crore loss.