Zetwerk Raises ₹2,251 Cr From Anchor Investors Ahead Of IPO

Manufacturing company Zetwerk has raised ₹2,251.2 Cr from anchor investors ahead of the opening of its initial public offering (IPO) for public subscription on October 15.

The company allotted 14.91 Cr equity shares to anchor investors at ₹151 apiece, the upper end of its IPO price band.

Domestic mutual funds accounted for around 46% of the anchor book, picking up 6.80 Cr shares through 61 schemes across 22 fund houses. Notably, 40% of the anchor investor portion was reserved for domestic mutual funds, life insurance companies and pension funds.

SBI Mutual Fund emerged as the largest  among these investors, acquiring 1.02 Cr shares through two schemes. ICICI Prudential Mutual Fund also accounted for around 7% of the anchor allocation. Other participating fund houses included Bajaj Finserv, Abakkus, Baroda BNP Paribas, Motilal Oswal and Edelweiss.

Global institutional investors accounted for a significant part of Zetwerk’s anchor book. Capital Group’s Smallcap World Fund Inc received the largest individual allocation, worth ₹288 Cr, accounting for 12.79% of the total anchor portion. Government Pension Fund Global and Abu Dhabi Investment Authority’s Monsoon fund were each allocated shares worth about ₹75 Cr, while Nomura India Investment Mother Fund received an allocation worth ₹50 Cr.

Among international investors, the anchor book featured the likes of Goldman Sachs, BlackRock, First Sentier Investors and Societe Generale.

Zetwerk’s ₹5,012 Cr IPO will open for public subscription on October 15 and close on October 17. At the upper end of the price band of ₹143-₹151 per share, the offering values the company at a post-issue market capitalisation of around ₹25,583 Cr, or approximately $2.7 Bn.

The IPO comprises a fresh issue of ₹2,830 Cr and an offer for sale (OFS) of up to 14.45 Cr shares, amounting to ₹2,182.3 Cr at the upper end of the price band.

The company has increased the fresh issue from ₹2,600 Cr proposed in its updated draft red herring prospectus (UDRHP). The OFS component has also expanded by 49.2% from approximately 9.7 Cr shares.

Zetwerk’s promoters and cofounders, Amrit Pratik Acharya and Srinath Ramakkrushnan, will each sell up to 1.42 Cr shares. Other shareholders offloading their stakes include promoter group entity Creovate Innovation and funds associated with Peak XV Partners, Accel India, Lightspeed Venture Partners and Kae Capital.

The company plans to deploy ₹2,160 Cr from the fresh issue towards repaying or prepaying borrowings of Zetwerk and certain subsidiaries. The remaining proceeds will be used for acquisitions and general corporate purposes.

On the financial front, Zetwerk’s operating revenue rose to ₹15,739.3 Cr in FY26 from ₹11,331.9 Cr in FY25. However, its consolidated net loss widened to ₹1,606.2 Cr from ₹370.7 Cr in FY25 due to discontinued operations over the past fiscal.

The FY26 loss included an exceptional charge of ₹796.4 Cr linked to changes in share conversion ratios and an impairment charge of ₹453 Cr related to its discontinued civil infrastructure business.

In Q1 FY27, operating revenue grew 55.4% year-on-year (YoY) to ₹4,117.9 Cr from ₹2,649.4 Cr. Its total net loss narrowed 46.4% to ₹733 Cr from ₹1,368.5 Cr in the corresponding quarter last year.

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

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