Technology-led contract manufacturing platform Zetwerk has taken another step towards its much-awaited initial public offering (IPO), filing its Updated Draft Red Herring Prospectus (UDRHP) with market regulator SEBI on August 13, 2026.
The company is looking to raise up to Rs 2,600 crore through a fresh issue, while existing investors and shareholders will also sell shares through an offer for sale (OFS). The IPO comes as Zetwerk rapidly expands across manufacturing, renewable energy and emerging infrastructure sectors.
Credits: The Economic Times
Zetwerk IPO: What Is The Company Planning?
Zetwerk had originally filed its draft offer document with SEBI through the confidential filing route in April 2026. The regulator issued its observations on July 9, allowing the company to move forward with its public issue.
The IPO will comprise a fresh issue of up to Rs 2,600 crore along with an OFS of up to 96.84 million equity shares.
A substantial portion of the fresh capital will be directed towards reducing debt. Zetwerk plans to use Rs 1,250 crore to repay borrowings at the company level and another Rs 550 crore to repay debt at its subsidiaries.
The remaining funds will be used for unidentified acquisitions and general corporate purposes.
The company may also raise up to Rs 520 crore through a pre-IPO placement before filing its Red Herring Prospectus. If the placement goes ahead, the amount raised will be deducted from the fresh issue size.
Who Is Selling Shares In Zetwerk IPO?
The OFS will allow several existing shareholders to partially cash out their investments.
Promoters Amrit Pratik Acharya and Srinath Ramakkrushnan will each offer up to 14.23 million shares. Promoter group entity Creovate Innovation Pvt Ltd will sell up to 22.97 million shares.
Several major venture capital investors are also participating in the OFS. These include Peak XV Partners, Accel, Lightspeed Venture Partners and Kae Capital, among others.
Peak XV Partners Investments V plans to sell up to 8.44 million shares, while Accel India V (Mauritius) will offer up to 7.16 million shares.
Lightspeed Venture Partners Select IV Mauritius, Lightspeed India Partners II LLC and Kae Capital Fund II will also sell shares as part of the offer.
Other individual and institutional shareholders, including Vishal Chaudhary, Rahul Sharma and Ankit Fatehpuria, are also expected to participate.
Zetwerk Revenue Jumps 40%
Zetwerk’s financial performance has strengthened considerably, particularly as demand for manufacturing linked to new-age infrastructure increases.
The company’s revenue from operations surged 40.43% to Rs 15,913 crore in FY2026, compared with Rs 11,332 crore in the previous year.
Growth was driven by sectors including renewable energy, power transmission and AI infrastructure, highlighting Zetwerk’s exposure to some of India’s fastest-growing industrial segments.
Its adjusted EBITDA also improved sharply, rising from Rs 97 crore in FY2024 to Rs 421 crore in FY2026. Adjusted profit before tax turned positive at Rs 45.7 crore, compared with a loss of Rs 248.8 crore in FY2024.
However, the company’s reported PBT remained in the red at Rs 1,558 crore in FY2026. The loss was largely linked to a Rs 796-crore non-cash management stock-options equity top-up and a Rs 453-crore provision related to its discontinued civil infrastructure business.
Manufacturing Order Book Doubles
One of the key indicators of Zetwerk’s growth is its expanding manufacturing order book.
The company’s manufacturing order book nearly doubled to Rs 12,370 crore in FY2026, compared with Rs 6,170 crore in FY2024.
The company has also expanded beyond the Indian market. International markets accounted for nearly 30% of manufacturing revenue, reflecting the growing contribution of its overseas operations.
Zetwerk currently connects 26 owned manufacturing facilities across India, the US, Germany and Spain with 6,979 third-party suppliers.
This network allows the company to operate as a technology-enabled bridge between businesses requiring manufactured products and a large ecosystem of manufacturing partners.
Credits: The Economic Times
Why Zetwerk IPO Is Being Watched Closely
Zetwerk’s IPO comes at an interesting time for India’s manufacturing sector. Government efforts to strengthen domestic manufacturing, rising renewable energy investments and growing demand for infrastructure linked to artificial intelligence are creating new opportunities for industrial suppliers.
The company’s growth in revenue, EBITDA and order book suggests that it is benefiting from these trends. At the same time, its reported losses and substantial debt repayment plans will remain important considerations for investors.
For Zetwerk, the IPO is therefore more than simply a fundraising exercise. The fresh capital could help reduce its debt burden, while a public listing could provide greater visibility and financial flexibility as it expands its manufacturing network.
With SEBI’s observations already received and the UDRHP now filed, Zetwerk is moving steadily closer to becoming one of India’s notable technology-enabled manufacturing companies to enter the public markets.
