Zetwerk Manufacturing Businesses IPO opens on October 15; check all key details here

Peak XV Partners and Accel India-backed Zetwerk Manufacturing Businesses is seeking a valuation of Rs 25,583 crore ($2.64 billion) through its initial public offering, according to a company filing on Monday. The Rs 5,012-crore IPO will open for public subscription on October 15 and close on October 19, with anchor investor bidding scheduled for October 14.

The technology-driven manufacturing platform has fixed a price band of Rs 143-151 per share. The issue comprises a fresh issue of shares worth up to Rs 2,830 crore and an offer for sale of 14.453 crore shares by promoters and existing investors. The company’s shares are expected to list on the stock exchanges on October 23.

Zetwerk’s promoters — Amrit Pratik Acharya, Srinath Ramakkrushnan and Creovate Innovation — are collectively selling 5.14 crore shares in the IPO. Existing investors, including Peak XV Partners, Lightspeed Venture Partners and Accel India, are also among the shareholders offering their stakes. The proceeds from the fresh issue are separate from the OFS component, under which the selling shareholders will receive the proceeds from the shares sold.

Zetwerk operates a technology-driven manufacturing platform and counts Siemens Gamesa, Acer India, the Indian Air Force and NTPC Renewable Energy among its customers.

The company is approaching the primary market at a time when investor activity in India’s IPO market remains strong. Jio Platforms is also expected to launch its public issue on October 21, which could become the country’s largest-ever IPO. More than 230 companies have raised $12.65 billion through public offerings in India so far this year as of October 7, up 8.3% from the corresponding period last year, according to LSEG data.

Zetwerk reported revenue from operations of Rs 4,118 crore for the April-June quarter, while its restated loss from continuing operations stood at Rs 641.29 crore. Revenue rose by more than 55% year-on-year, while the loss narrowed from Rs 881 crore in the corresponding period a year earlier. The improvement in revenue and the narrowing of losses are among the financial indicators that investors may assess while evaluating the IPO.

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 for the issue, while Kfin Technologies is the registrar.