Now Reading: Zetwerk files IPO papers, to raise Rs 2,600 crore
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Zetwerk files IPO papers, to raise Rs 2,600 crore
Zetwerk Manufacturing Businesses has filed updated IPO papers to raise Rs 2,600 crore through a fresh issue, with Rs 1,800 crore earmarked for debt repayment. The IPO also includes an offer for…
The Story in Brief
Zetwerk Manufacturing Businesses has filed updated IPO papers to raise Rs 2,600 crore through a fresh issue, with Rs 1,800 crore earmarked for debt repayment. The IPO also includes an offer for sale of 96.84 million shares by early investors and promoters. The Business Line reports the company logged a Rs 12,300-crore order book for FY26, up 40% year-on-year, while revenue grew 40% to Rs 15,900 crore. Zetwerk now operates 26 captive plants, up from 7% of manufacturing revenue two years ago to 33% now.
International business rose to about Rs 2,800 crore in FY26 from Rs 2,300 crore a year earlier, helped by the China+1 shift. Energy accounts for 70% of manufacturing revenue, while precision manufacturing, including defence, contributes 15%. The company reported a pre-tax loss of Rs 916 crore on one-off charges. Customers include Schneider Electric, Indian Oil, Siemens and Acer. The primary market has revived after a subdued first half, with 22 companies launching IPOs since July.
The Indian Opinion
The narrative that Zetwerk is simply a 'manufacturing marketplace' ignores its sharp pivot to owning 26 captive plants, which now contribute a third of segment revenue. Debt repayment consuming 70% of the fresh issue suggests the asset-heavy model carries real interest costs, a risk often glossed over by IPO cheerleaders. The test is whether this in-house capacity can sustain its 120% net revenue retention without sacrificing margins, or if the shift merely recreates the very capital intensity it once avoided.
Sources (2): thehindubusinessline.com, thehindubusinessline.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
