Zetwerk Plans $2.6B IPO in India, Backed by Peak XV and Accel

Zetwerk Manufacturing Businesses, a technology-led contract manufacturing platform backed by Peak XV Partners and Accel India, is preparing to launch an initial public offering (IPO) in India targeting a valuation of ₹25,583 crore (approximately $2.64 billion). The company disclosed this information in a regulatory filing on Monday.

The IPO is set to open for public subscription on October 15 and close on October 19. Following this, Zetwerk's shares are expected to be listed and begin trading on the stock exchanges starting October 23. Prior to the public subscription, anchor investors will have the opportunity to place bids on October 14.

Zetwerk operates in the contract electronics manufacturing space and boasts a clientele that includes prominent names such as Siemens Gamesa, a major wind turbine manufacturer, Acer India, the Indian Air Force, and NTPC Renewable Energy. This diverse customer base highlights Zetwerk’s reach across various industrial segments, from renewable energy to defense and computer hardware.

The planned IPO comes at a time when India’s primary market activity is notably high. For example, Jio Platforms, owned by billionaire Mukesh Ambani, is also expected to announce what could be India’s largest IPO on October 21. This environment reflects strong investor interest and a robust pipeline of public offerings in the Indian market.

Data from the London Stock Exchange Group (LSEG) shows that, as of October 7, over 230 companies have collectively raised $12.65 billion in India during 2023. This amount represents an 8.3 percent increase compared to the same period last year, underscoring a growing appetite for equity investments in the country.

Zetwerk’s IPO structure includes a fresh issue of shares worth up to ₹2,830 crore, alongside an offer for sale of 144.53 million shares held by promoters and existing investors. The company has set the price band for the shares between ₹143 and ₹151 per share.

Promoters Amrit Pratik Acharya, Srinath Ramakkrushnan, and Creovate Innovation are collectively planning to sell 51.4 million shares. Early investors such as Peak XV Partners, Lightspeed Venture Partners, and Accel India are also participating as selling shareholders in this offering.

From a financial perspective, Zetwerk reported revenues from operations amounting to ₹4,118 crore for the quarter ending June 30, 2023. During this period, the company’s restated loss from continuing operations narrowed significantly to ₹64.129 crore, compared to a loss of ₹881 crore in the previous year’s corresponding quarter. This indicates a notable improvement in the company’s financial health, with revenues rising more than 55 percent year-over-year.

Zetwerk’s business model centers on connecting manufacturers with large-scale industrial customers through a technology-driven platform. This approach aims to streamline supply chains and improve efficiency in contract manufacturing, a sector that is gaining traction as Indian industry modernizes and scales up production capabilities.

India’s IPO market has been witnessing increased activity due to a combination of economic growth, rising domestic savings, and a surge in investor interest. Companies like Zetwerk, which blend technology with traditional manufacturing, are attracting attention from both venture capitalists and public market investors seeking growth opportunities in sectors that support India’s industrial expansion.

As Zetwerk moves forward with its IPO, it will be closely watched by market participants keen to evaluate how technology-enabled manufacturing firms perform on public markets. The company’s successful listing could also encourage other tech-focused industrial firms to consider public offerings, contributing to the diversification and deepening of India’s capital markets.