Zetwerk Manufacturing Businesses launched its initial public offering (IPO) this week, aiming to raise ₹2,830 crore. The subscription window is open until Monday, with promoters and existing investors, including Peak XV, Accel, and Lightspeed, offering shares worth ₹2,182 crore through an offer-for-sale (OFS). The IPO values Zetwerk at an enterprise value of around ₹24,225 crore, based on the upper end of the price band, reflecting about 58 times its FY26 adjusted EBITDA, according to thehindubusinessline.com.
The eight-year-old tech-based manufacturing platform plans to use the IPO proceeds primarily to repay ₹2,160 crore of its ₹3,366 crore debt as of August 31, 2026. The remaining funds will support acquisitions and general corporate purposes. Post-IPO, the promoter and promoter group stake is expected to reduce from about 21 percent to 16 percent, excluding dilution from employee stock options. Zetwerk operates across sectors such as energy, consumer electronics, aerospace, and precision engineering, serving a diverse customer base, thehindubusinessline.com reported.
Zetwerk stands out as a company at the intersection of technology and manufacturing, sectors currently attracting significant investor interest. However, the company has yet to achieve profitability and has no listed peers for direct comparison. The asking valuation multiple is considered high relative to its financials, which has led some analysts to advise caution. Investors are recommended to wait until after the listing to assess Zetwerk's execution capabilities before committing capital, per thehindubusinessline.com.
The IPO subscription closes on Monday, with Zetwerk targeting a significant reduction in debt and capital for expansion. The company's financial disclosures as of August 31, 2026, show total debt of ₹3,366 crore, underscoring the importance of the IPO proceeds for deleveraging.