Zetwerk files updated IPO draft papers to raise Rs 2,600 crore

Contract manufacturing startup Zetwerk has filed the updated draft red herring prospectus (UDRHP) with Sebi (Securities and Exchange Board of India) on Thursday for its initial public offering (IPO) as it plans to raise up to Rs 2,600 crore through a fresh issue.

Zetwerk also has an offer for sale of up to 96,837,455 equity shares for existing shareholders to sell their stake.

The Bengaluru-based company had received Sebi approval on July 10 for its IPO, clearing the way for one of the largest listings by a new-age manufacturing company. It had submitted its pre-filed DRHP through Sebi’s confidential filing route in late March.


Of the total fresh issue proceeds, Zetwerk plans to use Rs 1,250 crore to repay debt at the company level and another Rs 550 crore will be used towards borrowings at subsidiaries. The rest of the capital will be used for unidentified acquisitions and general corporate purposes.

It has appointed Kotak Mahindra Capital, Goldman Sachs, Pantomath Investment Banking, Morgan Stanley, HSBC, and JM Financial as merchant bankers for its IPO.

Founded in 2018 by IIT alumni Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma, and Vishal Chaudhary, with Ankit Fatehpuria later elevated as the fifth cofounder, Zetwerk connects enterprise customers with manufacturing suppliers across energy, electronics, defence, aerospace, and capital goods sectors.