Zetwerk Files UDRHP For ₹2,600 Cr IPO

Bengaluru-based startup Zetwerk has filed its updated draft red herring prospectus (UDRHP), months after the markets regulator SEBI cleared its confidential filing. The proposed initial public offering (IPO) offer comprises a fresh issue of shares worth ₹2,600 Cr  and an offer-for-sale (OFS) component of up to 9.6 Cr equity shares. 

The OFS component will see startup’s early investors including Peak XV Partners, Lightspeed Venture Partners, Kae Capital, among others to offload parts of their stake in the contract manufacturer. The startup’s promoters Amrit Acharya and Srinath Ramakkrushnan will also sell 1.4 Cr equity shares each. 

The startup will utilise almost 69% of its fresh issue,  around ₹1,800 Cr, to repay/prepay certain borrowings. This will change Zetwerk’s interest burden and earnings profile. 

The startup’s top line for the fiscal year FY26 surged over 40% to ₹15,900 Cr from ₹11,300 Cr in the previous fiscal year. Of this, approximately ₹9,300 Cr came from manufacturing, while the remainder from its ecosystem/raw-material business.

The startup saw its net loss climb 333% YoY to ₹16,061 Cr. The company’s loss deepened largely due to a ₹450 Cr provision related to the discontinued civil infrastructure business and around ₹800 Cr accounting charge related to the founders increasing their ownership from 15% to about 20%.

(Story Will Be Updated)

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