The Zetwerk Manufacturing Businesses IPO is open for subscription until Monday, targeting to raise ₹2,830 crore through fresh equity issuance. According to reports from The Hindu BusinessLine, the company is valued at an enterprise value of around ₹24,225 crore at the upper end of the price band, representing approximately 58x FY26 adjusted EBITDA. The offering includes ₹2,182 crore worth of shares through an offer-for-sale by promoters and existing investors, including Peak XV, Accel, and Lightspeed. The promoter and promoter group stake is expected to reduce from 21% to 16% after the IPO.
As reported by The Hindu BusinessLine, Zetwerk operates as a tech-based manufacturing platform connecting customers with approximately 7,000 third-party suppliers across multiple countries including the US, Taiwan, Vietnam, Germany, Spain, and Mexico. The company serves marquee customers such as Siemens Gamesa, Acer, boAt, CG Power, NTPC, Indian Oil, DRDO, and the Indian Air Force across sectors including energy, consumer electronics, aerospace, and precision engineering. The platform generates revenue through its 'Manufacturing business' segment, which recorded ₹9,375 crore in FY26, with about one-third coming from its own manufacturing facilities. The company also operates an 'Ecosystem business' segment through a separate trading platform for materials.
According to The Hindu BusinessLine, between FY24 and FY26, Zetwerk's overall revenue grew at a CAGR of 13.5%, while EBITDA and adjusted EBITDA (adjusted for ESOP costs) grew at 293% and 108% respectively. The manufacturing segment specifically achieved a CAGR of 24% during this period. Energy products accounted for 69% of FY26 manufacturing revenue with a 25% CAGR, precision products represented 15% with a 55% CAGR, and capital goods constituted 16% with a 5.5% CAGR. The company's manufacturing order book stands at ₹13,062 crore, representing 1.4x FY26 manufacturing revenue.
As reported by The Hindu BusinessLine, the company plans to use the IPO proceeds to pay down ₹2,160 crore of its total debt of ₹3,366 crore as of August 31, 2026, and allocate the remaining funds for acquisitions and general corporate purposes. The IPO is priced at the intersection of technology and manufacturing sectors, with the company serving customers in utilities, renewables, consumer electronics, aerospace, defence, oil & gas, and AI. However, the publication recommends investors consider the IPO after listing, citing concerns about the expensive valuation and the company's lack of profitability despite being an eight-year-old startup.
