Zetwerk Sets IPO Price Band at Rs 143-151, Eyeing Rs 5,012 Crore From the Issue
Zetwerk Manufacturing Business has fixed a price band of Rs 143 to Rs 151 per share for its Rs 5,012 crore IPO, which opens for subscription on October 15 and closes on October 19. Anchor investor bidding is scheduled for October 14, and the shares are proposed to list on the BSE and NSE on October 23.
Here’s how the issue is structured. The IPO combines a fresh issue of Rs 2,830 crore with an offer for sale of about 14.45 crore shares by existing shareholders, valued at roughly Rs 2,182 crore at the upper end of the band. The fresh issue was raised from the earlier Rs 2,600 crore in the RHP, while the OFS component grew by around 49%. Promoters Amrit Acharya and Srinath Ramakkrushnan, along with promoter group entity Creovate Innovation, are among the sellers. The retail quota is 10%, with a lot size of 99 shares, which means a minimum investment of Rs 14,949.
The use of proceeds tells you where the money is headed. Of the fresh issue, Rs 1,300 crore will go toward repaying certain borrowings of the company, Rs 860 crore toward repaying loans of its subsidiaries, and the rest toward general corporate purposes, issue expenses and unidentified acquisitions. In simple terms, a large part of the new money is about strengthening the balance sheet rather than funding fresh expansion.
The business itself is more than a pure manufacturing story. Manufacturing made up 59% of FY26 revenue, or Rs 9,375 crore, while the remaining 41%, or Rs 6,539 crore, came from Terra91, its ecosystem arm that buys and resells industrial raw materials such as steel, aluminium and chemicals. Since incorporation, Zetwerk has delivered products and raw materials with a cumulative gross merchandise value of Rs 74,374 crore, and it serves 1,802 customers across 29 countries, including Fortune 500 companies and several Sensex and Nifty 50 names.
A reality check worth noting: the Rs 5,012 crore figure is calculated at the upper end of the band, and the heavy loan repayment component means investors should look closely at how quickly the balance sheet improves after listing, not just at the headline issue size.
From a 2018 startup connecting buyers with small manufacturers to a Rs 5,000 crore public issue, Zetwerk’s IPO will be one of the biggest tests of the market’s appetite for India’s manufacturing story this year.
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— Sandeep Raiza