Published: October 13, 2026 • Category: Indian Tech • IPO Financials • By Depth Grid News Desk
BENGALURU: Zetwerk Manufacturing Business has fixed a price band of Rs 143 to Rs 151 per share for its initial public offering, which would raise about Rs 5,012.3 crore at the upper end and value the company at about Rs 25,583 crore.[4][6] Anchor investor bidding is scheduled for October 14, public subscription runs from October 15 to October 19 and shares are expected to list on the NSE and BSE on October 23.[4][7] The company filed its red herring prospectus on October 11, 2026, with SEBI oversight of the offer documents.[8][1]
Issue Structure and Who Is Selling
The fresh issue was raised to Rs 2,830 crore from the Rs 2,600 crore proposed earlier, an increase of about 8.8%, while the offer for sale grew 49% to 14.45 crore shares.[8] At the cap the offer for sale is worth Rs 2,182.3 crore, so about 43.5% of the issue goes to selling shareholders rather than to the company, on Depth Grid's calculation.[5]
| Issue Component | Amount (Rs crore) | Share of Issue |
|---|---|---|
| Fresh issue | 2,830.0 | 56.5% |
| Offer for sale (14.45 crore shares) | 2,182.3 | 43.5% |
| Total issue at upper band | 5,012.3 | 100% |
Twenty-four shareholders are selling.[8] Co-founders Amrit Pratik Acharya and Srinath Ramakrishnan each offer up to 1.42 crore shares. Promoter group entity Creovate Innovation offers up to 2.30 crore.[6] Among investors, Lightspeed Venture Partners sells up to 2.51 crore shares, Peak XV Partners up to 2.34 crore, Kae Capital and Kalysta Capital together up to 1.67 crore and Accel India V up to 1.2 crore.[8] Those named sellers account for about 12.86 crore of the 14.45 crore shares, a sum Depth Grid calculated from the reported figures. Promoter holding is expected to fall to 15.71% from 21.08%.[7]
Up to 75% of the net issue is allocated to qualified institutional buyers, 15% to non-institutional investors and 10% to retail investors.[4] Eligible employees can buy 7 lakh shares at a Rs 14 discount. The lot size is 99 shares, which means a minimum bid of Rs 14,949 and a maximum retail bid of Rs 1,94,337 at the cap.[4][10] Seven book running lead managers are handling the issue, including Kotak Mahindra Capital, Morgan Stanley India and Goldman Sachs (India) Securities.[4]
Financial Performance: Fast Growth and Heavy Losses
Revenue rose 40.4% to Rs 15,913.3 crore in FY26 from Rs 11,331.9 crore, while the net loss widened to Rs 1,606.1 crore from Rs 370.7 crore.[4] In the April to June 2026 quarter revenue grew 55.4% to Rs 4,117.9 crore and the net loss narrowed to Rs 732.9 crore from Rs 1,368.4 crore a year earlier, a reduction of about 46%.[4]
| Metric (Rs crore) | FY25 | FY26 | Q1 FY26 | Q1 FY27 |
|---|---|---|---|---|
| Revenue | 11,331.9 | 15,913.3 | 2,649.4 | 4,117.9 |
| Net loss | 370.7 | 1,606.1 | 1,368.4 | 732.9 |
| Net loss margin | 3.3% | 10.1% | 51.6% | 17.8% |
Source: Zetwerk offer documents as reported by Analytics Insight.[4] Net loss margins are Depth Grid calculations.
One pattern stands out in the reported numbers. The Q1 FY26 loss of Rs 1,368.4 crore is about 85% of the full-year FY26 loss, which implies the remaining three quarters lost about Rs 238 crore combined. The sources reviewed do not explain the first-quarter figure, so Depth Grid cannot say whether it reflects exceptional or one-time items. Readers should check the prospectus before drawing conclusions about the underlying loss rate.
Valuation and Use of Proceeds
At the upper band the company would be valued at about Rs 25,583 crore, roughly 1.6 times FY26 revenue on Depth Grid's calculation.[6] Because the company is loss-making, a price-to-earnings ratio is not meaningful. Depth Grid has not added listed peer multiples because they change daily.
Rs 2,160 crore, about 76% of the fresh issue, is earmarked to repay or prepay borrowings of the company and certain subsidiaries. The rest will fund acquisitions that have not been identified, along with general corporate purposes.[4][5] Zetwerk aggregates manufacturing capacity from third-party suppliers and its own facilities through a network supported by its Zetwerk OS platform. Its work spans renewable energy, consumer electronics, AI infrastructure, aerospace, defence, industrial automation and oil and gas.[4] The company filed draft papers confidentially in March and an updated draft in August.[5]
Timeline, Holiday Calendar and Market Context
Bidding closes on Monday, October 19. Allotment is expected on Wednesday, October 21 because Tuesday, October 20 is a market holiday for Dussehra.[9] Shares are due in demat accounts on October 22 ahead of the October 23 listing.[7]
The issue arrives as private funding cools. Inc42 reported that Indian startups raised 122.9 million dollars between October 5 and October 9, down 47.4% from 233.6 million dollars the previous week.[11] Bloomberg also reported that the Jio Platforms IPO is expected to open on October 21, so two of the largest Indian issues of the year could be in the market within days of each other.[12]
Strategic Implications for Investors and Indian Tech
Zetwerk tests how public investors price a fast-growing business that still loses money. Revenue is growing at 40% to 55% a year, but a net loss margin of about 10% in FY26 and about 18% in Q1 FY27 means subscription demand will show how much weight buyers give growth against profitability.
For early backers, the offer for sale is a liquidity event. Funds linked to Lightspeed, Peak XV, Accel and Kae are all selling part of their holdings. Depth Grid's report on Q3 global venture funding tracks how much capital is waiting in private markets for exits like this. Our comparison of startup funding in India, the USA and Europe puts the Indian market in global context. Investor interest in Indian hardware is also visible in Volantis' 88 million dollar raise.
Three data points will matter in the coming days: demand in the October 14 anchor book, subscription by category when bidding closes on October 19 and the first day of trading on October 23.
Common Questions and Direct Answers
What is the Zetwerk IPO price band and issue size?
Zetwerk has fixed the price band at Rs 143 to Rs 151 per share. The issue totals about Rs 5,012.3 crore at the upper end, made up of a fresh issue of Rs 2,830 crore and an offer for sale of 14.45 crore shares worth Rs 2,182.3 crore. The upper band implies a valuation of about Rs 25,583 crore.
When does the Zetwerk IPO open, close and list?
Anchor investor bidding is on October 14. Public subscription runs from October 15 to October 19, 2026. Allotment is expected on October 21 because October 20 is a market holiday for Dussehra. Shares are expected to be credited on October 22 and to list on the NSE and BSE on October 23.
Who is selling shares in the Zetwerk IPO?
Twenty-four shareholders are selling in the offer for sale. Co-founders Amrit Pratik Acharya and Srinath Ramakrishnan each sell up to 1.42 crore shares. Lightspeed, Peak XV, Accel India V, Kae Capital and Kalysta Capital are also selling. Promoter shareholding is expected to fall to 15.71% from 21.08% after the issue.
Is Zetwerk profitable?
No. Zetwerk reported a net loss of Rs 1,606.1 crore in FY26 on revenue of Rs 15,913.3 crore, against a loss of Rs 370.7 crore a year earlier. In April to June 2026 the loss narrowed to Rs 732.9 crore from Rs 1,368.4 crore while revenue grew 55.4% to Rs 4,117.9 crore.
How will Zetwerk use the IPO proceeds?
Zetwerk plans to use Rs 2,160 crore of the Rs 2,830 crore fresh issue, about 76%, to repay or prepay borrowings of the company and certain subsidiaries. The remainder will fund acquisitions that have not yet been identified and general corporate purposes. Proceeds from the offer for sale go to the selling shareholders, not to the company.
Primary Sources and Regulatory Filings
- Securities and Exchange Board of India: offer documents and public issue filings
- National Stock Exchange of India: issue and listing announcements
- BSE: issue and listing announcements
- Analytics Insight: Zetwerk IPO price band, allocation, financials and lead managers
- Inc42: Zetwerk price band, OFS and use of proceeds from the RHP
- Entrackr: Zetwerk price band, valuation and selling shareholders
- TradingView News: Zetwerk price band, promoter holding and listing schedule
- CXO Digitalpulse: Zetwerk revised fresh issue and OFS, RHP filed October 11, 2026
- CNBC TV18 via TradingView: Zetwerk allotment date and Dussehra market holiday
- IPO Watch: Zetwerk IPO dates, lot size and issue structure
- Inc42: Indian startup funding for October 5 to 9, 2026
- Bloomberg report via IndiaIPO: reported Jio Platforms IPO schedule
Issue terms, dates and financial figures are as reported from the red herring prospectus and may differ from the final filing.
Related Intelligence
Depth Grid News Desk | depthgrid.in
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