Manufacturing platform Zetwerk has taken a major step towards its public market debut by filing its Updated Draft Red Herring Prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI). The Bengaluru-based company plans to raise Rs 2,600 crore through a fresh issue of equity shares, while existing shareholders will offload up to 9.68 crore shares via an offer for sale (OFS).
The filing follows SEBI’s observations on the company’s confidential draft prospectus submitted earlier this year, clearing the way for Zetwerk to move ahead with its IPO process.
Promoters to Sell Majority of OFS Shares
A notable aspect of the proposed IPO is that promoters and promoter group entities will account for nearly 53% of the total OFS.
Co-founders Amrit Acharya and Srinath Ramakkrushnan plan to sell up to 1.42 crore shares each, while promoter group entity Creovate Innovation will offload 2.3 crore shares. Together, the promoter group will sell approximately 5.14 crore shares through the offer for sale.
Several existing investors will also pare their holdings in the IPO, including Peak XV Partners, Accel India, Lightspeed Venture Partners, and Kae Capital, among others.
The final size of the OFS in value terms will depend on the eventual IPO pricing.
Company May Raise Rs 520 Cr Before IPO
Zetwerk has also retained the option to raise up to Rs 520 crore through a pre-IPO placement before filing its final Red Herring Prospectus (RHP). If the placement is completed, the amount raised will be deducted from the fresh issue component, in line with SEBI regulations.
Majority of Fresh Proceeds Earmarked for Debt Reduction
The company intends to deploy a substantial portion of the fresh issue proceeds toward reducing its debt burden.
According to the UDRHP, Rs 1,250 crore will be used for repayment or prepayment of borrowings at the parent company level, while another Rs 550 crore has been earmarked to repay debt at certain subsidiaries.
The remaining capital will be utilized for strategic acquisitions and general corporate purposes, supporting Zetwerk’s long-term expansion plans.
Revenue Crosses Rs 15,900 Crore in FY26
Zetwerk continued to deliver strong operational growth during FY26.
The company reported Rs 15,913 crore in revenue from continuing operations, compared to Rs 11,332 crore in FY25, reflecting robust growth across its manufacturing platform.
Its adjusted EBITDA increased to Rs 421 crore from Rs 323 crore a year earlier, while the adjusted EBITDA margin improved to 2.65%.
Founded in 2018, Zetwerk operates a technology-driven manufacturing platform that connects enterprises with a network of manufacturing partners across sectors including industrial machinery, renewables, aerospace, defence, consumer electronics, infrastructure, and precision components.
Outlook
Zetwerk’s UDRHP filing marks another milestone in India’s active IPO pipeline, with the company seeking to strengthen its balance sheet while positioning itself for the next phase of growth. The planned debt reduction, coupled with capital for acquisitions, reflects its strategy of scaling manufacturing capabilities and expanding across high-growth industrial sectors. Backed by strong revenue growth and improving operating performance, the IPO is expected to be closely watched by public market investors as one of the largest startup listings in India’s manufacturing ecosystem.https://chatgpt.com/backend-api/sentinel/frame.html?sv=20260810913b
