Zetwerk is a Bengaluru-based, tech-led contract-manufacturing platform. It connects enterprises with a network of thousands of manufacturing partners and its own 20+ factories (India, US, Mexico, Spain) for energy products such as transformers and solar structures, electronics, precision parts and capital goods, and runs a metals and commodities trading arm. Its order book stood at ₹13,062 crore in June 2026.

The ₹5,012.33 crore issue combines a ₹2,830 crore fresh issue (18.75 crore shares) with a ₹2,182.33 crore offer for sale by the founders and investors including Peak XV, Lightspeed, Accel and Kae Capital. As a loss-making company, QIBs get 75% and retail investors only 10%; 7 lakh shares are reserved for employees at a ₹14 discount. Zetwerk raised ₹2,251.23 crore from 99 anchor accounts on 14 October 2026.

Objects of the issue

  • ₹1,300 crore to repay company borrowings
  • ₹860 crore to repay subsidiaries' borrowings
  • Unidentified acquisitions and general corporate purposes

Key numbers

  • Market cap at upper band: ₹25,583 crore, below its last private-round valuation
  • Valuation: not meaningful on earnings (FY26 EPS −₹10.66); about 1.6x FY26 price-to-sales; price-to-book about 4.8x
  • FY26: revenue from operations ₹15,913 crore (+40%), adjusted EBITDA ₹421 crore (2.65% margin); the loss includes about ₹836 crore of accounting charges and ₹486 crore from discontinued operations
  • Borrowings: ₹1,936 crore at March 2026
  • Promoter holding: 15.86% pre-issue → 11.36% post-issue

Strengths

  • Large, fast-growing platform with a ₹13,062 crore order book
  • Debt repayment should cut interest costs meaningfully
  • Strong institutional anchor book; priced below the last private round

Risks

  • Persistent losses and negative operating cash flow; razor-thin margins
  • Weak public demand: 0.31x subscribed by the end of day 2, with the GMP down to about 5%
  • Part of the proceeds goes to acquisitions that are not yet identified
  • Auditor observations on receivables and internal controls; tariff risk on US solar orders
  • Large offer for sale by VCs and a low promoter stake

Financials are restated consolidated figures in ₹ crore; "Revenue" is total income. Subscription figures are as of the end of day 2 (16 October, about 5 PM); bidding closes on Monday 19 October. Grey market premium is unofficial and changes quickly.