Now Reading: Zetwerk files DRHP for Rs 2,600 crore IPO
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Zetwerk files DRHP for Rs 2,600 crore IPO
B2B manufacturing platform Zetwerk has filed its updated IPO papers with SEBI, aiming to raise Rs 2,600 crore through a fresh issue of shares. The IPO also includes an offer for sale (OFS) of up to 9.6 crore equity shares by existing investors and promoters. Promoters and co-founders Amrit Acharya and Srinath Ramakkrushnan will each offload up to 1.4 crore shares, while promoter entity Creovate Innovations will sell up to 2.3 crore shares.
Major investors including Peak XV Partners (12% stake), Accel (7.7%), and Lightspeed (9.9%) will partially exit through the OFS. Greenoaks, Zetwerk's largest shareholder with nearly 20%, will not participate. The company plans to use Rs 1,800 crore of the fresh proceeds to repay or prepay debt. Zetwerk reported operating revenue of Rs 15,913.3 crore in FY26, up 40.4% YoY, but its net loss surged to Rs 1,606.2 crore, partly due to an exceptional non-cash item of Rs 835.8 crore and impairment from discontinued operations.
The company's adjusted EBITDA rose to Rs 421.3 crore in FY26, yet net operating cash outflow widened to Rs 681.5 crore. Zetwerk's order book stood at Rs 12,370 crore entering FY27, 43% higher than a year ago. The company operates 26 manufacturing facilities across four countries and serves 1,802 customers. It filed confidentially in March and received SEBI approval last month.
Indian Opinion Analysis
Both reports from Inc42 are neutral in tone, presenting Zetwerk's IPO details and financial performance without obvious editorial slant. The coverage emphasises the company's strong revenue growth and order book alongside its widening net loss and cash outflow, giving a balanced picture. The real tension is between Zetwerk's top-line expansion and its persistent cash burn. Investors will focus on whether the shift to in-house manufacturing for high-margin sectors like defence and AI infrastructure can improve margins and cash flow. The IPO will test if public markets value growth prospects over current profitability.
Coverage: 2 sources, 2 neutral
Sources (2): inc42.com (neutral report), inc42.com (2) (neutral report)
This story was synthesised by AI from the 2 sources linked above. Methodology and corrections.
Updated: this story now draws on 2 sources.
