Zetwerk files updated draft IPO papers with Sebi for Rs 2,600 crore fresh issue

Zetwerk, a technology-led manufacturing platform, has filed its Updated Draft Red Herring Prospectus (UDRHP-1) with the Securities and Exchange Board of India (Sebi), outlining a proposed initial public offering (IPO) with a fresh issue of equity shares worth up to Rs 2,600 crore.

The IPO will also include an offer for sale (OFS) of up to 9,68,37,455 equity shares, each having a face value of Rs 1, according to the updated draft papers.

Promoters Amrit Pratik Acharya and Srinath Ramakkrushnan, along with promoter group entity Creovate Innovation, will participate in the OFS. Other selling shareholders include Peak XV, Accel, Lightspeed and Kae Capital.

Zetwerk proposes to use the net proceeds from the fresh issue primarily to repay debt. Of the proceeds, Rs 1,250 crore is proposed to be used to repay borrowings at the company, while Rs 550 crore will be used to repay debt across its subsidiaries.

The remaining proceeds will be used for inorganic growth through unidentified acquisitions and general corporate purposes.

Kotak Mahindra Capital Company, Morgan Stanley India Company, Goldman Sachs (India) Securities, Avendus Capital, JM Financial, HSBC Securities and Capital Markets (India), and Pantomath Capital Advisors are the book-running lead managers to the issue.

Zetwerk had filed its preliminary IPO papers through the confidential pre-filing route in March.

Financial performance

Zetwerk's revenue from operations rose 40.4 per cent year-on-year (YoY) to Rs 15,913 crore in FY26, compared with Rs 11,332 crore in the previous year.

Its adjusted EBITDA increased to Rs 421 crore in FY26 from Rs 97 crore in FY24. The company's manufacturing order book also doubled to Rs 12,370 crore in FY26 from Rs 6,170 crore in FY24.

International markets accounted for nearly 30 per cent of Zetwerk's manufacturing revenue in FY26.

The company operates through two key businesses -- its Manufacturing Business and Ecosystem Business, branded Terra91. It discontinued its civil infrastructure business in FY26 as part of a strategic realignment.