Zetwerk, a business-to-business manufacturing platform, has set the price band for its initial public offering at ₹143 to ₹151 per share, targeting a total offer size of ₹5,012 crore. The public issue opens for bidding on October 15 and closes on October 19, with anchor bidding scheduled for October 14. Share allotment is expected by October 21, and the company is tentatively set to list on the BSE and NSE on October 23.
Offer Structure and Shareholder Sales
The IPO combines a fresh issue of ₹2,830 crore through 18.72 crore equity shares and an offer for sale of 14.45 crore shares worth ₹2,182.33 crore. Kae Capital, Accel, Peak XV Partners, and Lightspeed Venture Partners will together sell 76.3 million shares, more than half of the shares offered by existing shareholders. Early investors are seeing gross returns of up to 38 times at the upper price band, collectively realizing about ₹1,152 crore via the offer for sale.
IPO Timetable and Listing Details
Zetwerk's public issue opens on October 15 and closes on October 19, with anchor bidding on October 14. Share allotment is expected by October 21, and credit of shares and refunds are tentatively scheduled for October 22. Eligible employees receive a discount of ₹14 per share, while the expected listing date on the BSE and NSE is October 23.
Lot Sizes and Grey Market Premium
Retail applicants can bid for a minimum of 99 shares at ₹14,949 and a maximum of 13 lots. Small high-net-worth individuals can bid for 14 to 66 lots, while big high-net-worth individuals start at 67 lots, an investment of ₹10,01,583. Shares command a grey market premium of ₹20, or 13%, signaling a ₹171 listing price and ₹1,980 per lot gain, though such premiums are not guaranteed.
Use of Proceeds
From the fresh issue, Zetwerk plans to deploy ₹1,300 crore toward repayment of borrowings by the company and another ₹860 crore toward debt repayment by certain subsidiaries. The remaining proceeds are earmarked for inorganic growth initiatives and other general corporate purposes. Kotak Mahindra Capital, Morgan Stanley India, Avendus Capital, JM Financial, HSBC Securities, and Pantomath Capital Advisors are the merchant bankers for the issue, while KFin Technologies is the registrar.
Risk Factors to Monitor
Key risks include recurring losses, reliance on third-party manufacturers for raw material supply, exposure to price volatility, and heavy dependence on revenue from Indian operations. The company also depends on its top ten clients for a significant share of revenue and faces risks from failure to meet customer specifications and possible manufacturing facility shutdowns. Pricing pressure from customers and counterparty credit risk could affect cash flow and business operations, according to the red herring prospectus.
At the upper end of the price band, Zetwerk is valued at ₹25,583 crore, or US$2.7 billion, making this a substantial public market debut. The total IPO size stands at ₹5,012.33 crore, with a fresh issue of ₹2,830 crore and an offer for sale of ₹2,182.33 crore. Investors will watch final subscription figures, listing performance, and the company's ability to address the identified risk factors.