Zetwerk Shares List At 5.5% Premium, Stock Makes Positive Market Debut At ₹159.25 On NSE

Mumbai experienced a positive opening for Zetwerk Manufacturing Business shares on Friday, October 23, 2023. The stock debuted at Rs 159.25 on the National Stock Exchange (NSE), marking a 5.46 percent premium over the IPO issue price of Rs 151 per share. BSE listing also saw a 5.30 percent gain, opening at Rs 159 per share.

Grey market expectations had been modest, with InvestorGain reporting a premium of just Rs 1 on October 22, indicating a potential listing price of Rs 152 (0.66 percent). However, the actual debut far exceeded these predictions.

Zetwerk's IPO attracted a strong 3.06 times subscription, led by Qualified Institutional Buyers (QIBs) subscribing 4.73 times their allocated portion. Non-Institutional Investors (NIIs) and retail investors showed less interest, subscribing 1.40 times and 0.73 times their respective allotments. Retail investors needed a minimum investment of Rs 14,949 for one lot of 99 shares.

Proceeds from the fresh issue will primarily be used to repay debt, with the remaining funds earmarked for acquisitions, expansion, and general corporate purposes. Zetwerk's technology-driven manufacturing platform connects over 7,000 suppliers across 26 countries. Despite a rise in revenue to Rs 15,913 crore in FY26 from Rs 11,332 crore in FY25, the company's net loss expanded to Rs 991 crore from Rs 210 crore, with EBITDA margin declining to 2.1 percent from 2.5 percent.

SBI Securities recommends subscribing to Zetwerk for the long term, highlighting growth potential and the benefits of reduced debt.