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Zetwerk Manufacturing Businesses IPO: price band, dates, financials, valuation and risks
Zetwerk Manufacturing Businesses Limited, a technology-led contract manufacturing platform for energy equipment, electronics and industrial capital goods, is raising about ₹5,012 cr at a price band of ₹143 to ₹151: a fresh issue of ₹2,830 cr and an Offer for Sale of ₹2,182 cr. The company is loss-making, so the price to earnings ratio does not apply.
Last updated 23 Oct 2026. Sources: RHP and broker notes.
IPO means initial public offering. RHP is the Red Herring Prospectus, the offer document filed before the issue opens. UPI is the Unified Payments Interface. BSE is BSE Limited and NSE is the National Stock Exchange of India. FY26 means the financial year ended 31 March 2026. EBITDA is earnings before interest, tax, depreciation and amortisation.
Key dates
| Anchor investor bidding | Wed, 14 Oct 2026 |
|---|---|
| Issue opens | Thu, 15 Oct 2026 |
| Issue closes | Mon, 19 Oct 2026 (UPI mandate confirmation cut-off 5:00 pm) |
| Basis of allotment | Wed, 21 Oct 2026 (expected) |
| Refunds and credit of shares to demat accounts | Thu, 22 Oct 2026 (expected) |
| Listing | Fri, 23 Oct 2026 on BSE and NSE (expected) |
Issue details and application size
| Price band | ₹143 to ₹151 per share (face value ₹1) |
|---|---|
| Lot size | 99 shares |
| Minimum application at upper band | 99 × ₹151 = ₹14,949 |
| Total issue size | about ₹5,012 cr (33,20,07,155 shares at the upper band) |
| Fresh issue | ₹2,830 cr; proceeds go to the company |
| Offer for Sale and sellers | ₹2,182 cr (14,45,25,036 shares). Sellers are the promoters Amrit Pratik Acharya, Srinath Ramakkrushnan and Creovate Innovation Private Limited, and venture investors and other shareholders including Peak XV Partners, Lightspeed, Kae Capital and Accel; proceeds go to the sellers |
| Anchor portion | ₹2,251 cr (14,90,88,220 shares at ₹151), which is 60% of the institutional portion |
| Quota of the net offer | Qualified institutional buyers at least 75%, non-institutional investors up to 15%, retail investors up to 10%. Separate employee reservation of 7,00,000 shares with a ₹14 per share discount |
| Book running lead managers | Kotak Mahindra Capital Company, Morgan Stanley India, Goldman Sachs (India) Securities, Avendus Capital, JM Financial, HSBC Securities and Capital Markets (India), Pantomath Capital Advisors |
| Registrar | KFin Technologies Limited |
About the company
Zetwerk Manufacturing Businesses Limited was incorporated on 6 December 2017 at Chennai, Tamil Nadu, as Zetwerk Manufacturing Businesses Private Limited, and was converted into a public limited company in February 2026. Its registered office is in Bengaluru, Karnataka. It is an asset-light contract manufacturing platform that makes energy equipment (transformers, solar and wind parts), electronics and industrial capital goods through about 7,000 partner factories and 26 plants of its own, coordinated by its Zetwerk OS software. It also has a raw-material trading arm, Terra91.
India contributes about 83% and the USA about 14% of FY26 revenue. Its manufacturing order book was ₹13,062 cr at June 2026.
Financial snapshot (year ended 31 March 2026)
| Revenue from operations | ₹15,913 cr |
|---|---|
| Profit after tax | Loss of ₹1,606 cr (restated, including discontinued civil infrastructure operations); loss of ₹964 cr from continuing operations |
| EBITDA margin | 2.65% (adjusted EBITDA margin as defined in the RHP) |
| Debt to equity | 0.40 times |
The restated loss of ₹1,606 cr includes the discontinued civil infrastructure business; the loss from continuing operations was ₹964 cr. FY26 means the financial year ended 31 March 2026.
Valuation versus peers
At the upper band of ₹151 the market capitalisation is about ₹25,583 cr, which is about 1.6 times FY26 revenue of ₹15,913 cr (market capitalisation divided by revenue). The price to earnings ratio is not applicable because the company made a loss in FY26, so there is no earnings multiple to compare. The RHP names no listed peer, so a peer median price to earnings ratio is not available either. Broker notes estimate the valuation at about 66 to 73 times enterprise value to EBITDA.
Strengths
An asset-light hybrid manufacturing platform with 6,979 suppliers in 26 countries plus 26 own plants, run on proprietary Zetwerk OS and serving energy, electronics and capital-goods customers. The manufacturing order book of ₹13,062 cr (June 2026), 80% repeat-customer revenue and 129% median net revenue retention give visibility, and the manufacturing segment earns about 6% EBITDA margin. Operating leverage from the rising own-facility share (52.6% in the April to June 2026 quarter) and lower finance costs after ₹2,160 cr of debt repayment may help margins (broker notes).
Key risks
The company is still loss-making: the FY26 loss was ₹964 cr from continuing operations (₹1,606 cr including discontinued civil infrastructure) and operating cash flow has been negative every year. Adjusted EBITDA margin is only 2.65% because about 41% of revenue is low-margin Terra91 commodity trading. It relies heavily on third-party suppliers, and the top 10 customers made up 35.9% of revenue and that share is rising. Brokers note a rich valuation, a large Offer for Sale by venture investors and promoters, and continuing civil infrastructure losses of ₹669 cr in the April to June 2026 quarter.
Use of proceeds
The company receives only the fresh issue of ₹2,830 cr. Of this, ₹1,300 cr will repay or prepay borrowings of the company and ₹860 cr will repay or prepay borrowings of its subsidiaries. The balance is for unidentified inorganic acquisitions and general corporate purposes. The Offer for Sale proceeds go to the selling shareholders, not to the company.
Anchor investors
Anchors put in ₹2,251 cr at the upper band of ₹151 on 14 Oct 2026 (14,90,88,220 shares). By category, mutual funds took about ₹1,027 cr (45.6%), foreign portfolio investors about ₹982 cr (43.6%), insurers about ₹166 cr (7.4%), alternative investment funds ₹45 cr (2.0%) and foreign venture capital investors about ₹31 cr (1.4%). Half of the anchor shares are locked in until 20 Nov 2026 and the rest until 19 Jan 2027.
Frequently asked questions
What is the Zetwerk IPO price band and lot size?
The price band is ₹143 to ₹151 per share and one lot is 99 shares, so the minimum application at the upper band is ₹14,949.
Is the Zetwerk IPO a fresh issue or an Offer for Sale?
It is both. The fresh issue is ₹2,830 cr, which goes to the company, and the Offer for Sale is ₹2,182 cr (14,45,25,036 shares), whose proceeds go to the selling shareholders, including three promoters and venture investors.
When does the Zetwerk IPO open, close and list?
Anchor bidding was on 14 Oct 2026, the issue was open from 15 Oct to 19 Oct 2026, allotment is expected on 21 Oct, refunds and credit of shares on 22 Oct, and listing on BSE and NSE on 23 Oct 2026.
Who are the lead managers and registrar?
Kotak Mahindra Capital Company, Morgan Stanley India, Goldman Sachs (India) Securities, Avendus Capital, JM Financial, HSBC Securities and Capital Markets (India) and Pantomath Capital Advisors are the seven book running lead managers. The registrar is KFin Technologies Limited.
What is the valuation compared with peers?
At the upper band the market capitalisation is about ₹25,583 cr, or about 1.6 times FY26 revenue of ₹15,913 cr. The company made a loss, so the price to earnings ratio is not applicable, and the RHP names no listed peer, so there is no peer median.
How much will the promoters hold after the IPO?
The promoters and promoter group hold 21.08% before the issue and about 15.71% after it. The promoters sell part of their shares in the Offer for Sale and new shares issued in the fresh issue add to the total, which both reduce the percentage.
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