Zetwerk, a prominent technology-led manufacturing platform, has submitted its Updated Draft Red Herring Prospectus (UDRHP-1) to the Securities and Exchange Board of India (SEBI). The proposed Initial Public Offering (IPO) includes a fresh issue of equity shares aiming to raise up to Rs 2,600 crore.
In addition to the fresh issue, the IPO structure incorporates an Offer for Sale (OFS) comprising up to 9,68,37,455 equity shares, each with a face value of Re 1. This move follows Zetwerk's preliminary IPO filing in March, which was submitted through the confidential pre-filing route.
Utilisation of Fresh Issue Proceeds
Zetwerk intends to primarily allocate the net proceeds from the fresh issue towards debt repayment. A significant portion, Rs 1,250 crore, is earmarked for settling borrowings at the company level, while Rs 550 crore will be used to reduce debt across its subsidiaries. The remaining funds are planned for inorganic growth initiatives, specifically unidentified acquisitions, and for general corporate purposes.
Promoters and Investors in OFS
The Offer for Sale will see participation from key stakeholders, including promoters Amrit Pratik Acharya and Srinath Ramakkrushnan, alongside the promoter group entity Creovate Innovation. Several notable investors, such as Peak XV, Accel, Lightspeed, and Kae Capital, are also among the selling shareholders in the OFS.
Book-Running Lead Managers
Guiding Zetwerk through its public market debut are a consortium of book-running lead managers. These include Kotak Mahindra Capital Company, Morgan Stanley India Company, Goldman Sachs (India) Securities, Avendus Capital, JM Financial, HSBC Securities and Capital Markets (India), and Pantomath Capital Advisors.
Strong Financial Performance
Zetwerk has demonstrated robust financial growth, with revenue from operations increasing by 40.4% year-on-year to Rs 15,913 crore in FY26, up from Rs 11,332 crore in FY25. The company's adjusted EBITDA also saw a substantial rise, reaching Rs 421 crore in FY26 compared to Rs 97 crore in FY24. Furthermore, its manufacturing order book doubled from Rs 6,170 crore in FY24 to Rs 12,370 crore in FY26, indicating strong demand. International markets contributed nearly 30% to Zetwerk's manufacturing revenue in FY26.
Business Segments and Strategic Shifts
The company operates primarily through two core segments: its Manufacturing Business and the Ecosystem Business, branded as Terra91. In a strategic realignment during FY26, Zetwerk discontinued its civil infrastructure business to streamline operations and focus on its core strengths.