Zetwerk IPO: Kae Capital, Kalysta Bag 38.3X Returns, Lightspeed Pockets ₹440 Cr

Early backers Kae Capital Fund II and Kalysta Capital Fund II bagged 38.3X returns on shares sold through manufacturing company Zetwerk’s IPO, emerging among the biggest gainers in its offer for sale (OFS).

At ₹151 apiece, the upper end of the IPO price band, the sale price was 38.3 times the two funds’ weighted average acquisition cost of ₹3.94 per share.

Kae Capital Fund II pocketed ₹196.3 Cr by selling around 1.3 Cr shares, while Kalysta Capital Fund II received ₹63.3 Cr from the sale of 41.9 Lakh shares.

Both investors retain sizeable holdings after the sale. Kae Capital Fund II holds 4.3 Cr shares valued at ₹649.3 Cr at ₹151 apiece, while Kalysta Capital Fund II holds 1.4 Cr shares worth ₹211.4 Cr.

The payouts come after Zetwerk’s IPO closed with 3.06X subscription, attracting bids for 56.62 Cr shares against 18.50 Cr shares on offer. The company’s shares are scheduled to list on the exchanges tomorrow. 

Meanwhile, Peak XV and Lightspeed sold shares through multiple investment vehicles, with returns varying across their funds.

Peak XV pocketed a combined ₹359.3 Cr through two vehicles – Peak XV Partners Investments V and Peak XV Partners Growth Investments III. Peak XV Partners Investments V sold around 1.8 Cr shares for ₹271.8 Cr, clocking a 23.9X return multiple. It retains 12.2 Cr shares valued at ₹1,842.2 Cr at the IPO price.

Peak XV Partners Growth Investments III received ₹87.5 Cr from the sale of around 58 Lakh shares, realising a 3.3X return multiple. It retains 4 Cr shares worth ₹604 Cr. Together, the two funds held a 12.1% stake in Zetwerk before the OFS.

Lightspeed, which invested through three vehicles, collectively pocketed around ₹440 Cr.

Lightspeed Venture Partners Select IV Mauritius sold around 1.4 Cr shares for ₹211.4 Cr, while Lightspeed India Partners II, LLC sold 1.2 Cr shares for ₹181.2 Cr. Lightspeed India Partners III, LLC received ₹47.5 Cr from the sale of 31.5 Lakh shares.

Lightspeed India Partners II recorded the highest return multiple among the three vehicles at around 10.9X.

Among other selling investors, Accel clocked a 19.5X return. However, Creovate Innovation sold shares at 0.9X its acquisition cost, taking a loss on the stake sold.

Zetwerk Cofounders Pocket ₹423 Cr 

Zetwerk cofounders Amrit Acharya and Srinath Ramakkrushnan collectively pocketed around ₹423 Cr through the OFS, selling approximately 1.4 Cr shares each for ₹211.4 Cr apiece.

Following the sale, Acharya retains 10.1 Cr shares worth ₹1,525.1 Cr at the IPO price, while Ramakkrushnan retains 11.4 Cr shares valued at ₹1,721.4 Cr.

Cofounders Rahul Sharma, Vishal Chaudhary, and Ankit Fatehpuria also sold shares through the OFS. The RHP categorised the three under “individual selling shareholders”.

Sharma and Chaudhary each pocketed around ₹26 Cr by selling approximately 17.2 Lakh shares, while Fatehpuria received ₹34.3 Cr from the sale of 22.7 Lakh shares.

The shareholder payouts formed part of Zetwerk’s ₹5,012.3 Cr IPO, comprising a fresh issue of ₹2,830 Cr and an OFS of up to 14.45 Cr shares worth ₹2,182.3 Cr at the upper end of the price band.

Founded in 2018, Zetwerk operates a manufacturing platform serving businesses across industrial and consumer goods categories.

It combines capacity from third-party suppliers and its own facilities to manage manufacturing orders across sectors including renewable energy, consumer electronics, aerospace, defence, oil and gas, and industrial automation.

Ahead of the issue, Zetwerk raised ₹2,251.2 Cr from anchor investors. Domestic mutual funds, including SBI Mutual Fund and ICICI Prudential Mutual Fund, accounted for around 46% of the anchor book. Global investors, including Goldman Sachs, BlackRock, and Abu Dhabi Investment Authority, also participated.

On the financial front, Zetwerk’s operating revenue from continuing operations rose 55.4% to ₹4,117.9 Cr in Q1 FY27 from ₹2,649.4 Cr in the year-ago quarter. Its total net loss narrowed 46.4% to ₹733 Cr from ₹1,368.5 Cr.

Of the latest quarterly loss, ₹668.9 Cr came from discontinued operations, while continuing operations accounted for ₹64.1 Cr. The year-ago quarter included ₹803.2 Cr in exceptional charges from continuing operations and the ₹453 Cr impairment charge in the discontinued business.

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