SEBI Approves Zetwerk IPO, Clears Path for Rs 4,200 Crore Public Issue

Zetwerk Manufacturing Business Ltd has received the green light from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO), moving closer to its planned stock market debut.

The proposed IPO will comprise a fresh issue of equity shares and an offer for sale (OFS) by existing shareholders. The issue size and valuation will be determined through book building route.

The Bengaluru-based manufacturing technology company had filed its draft IPO papers confidentially earlier this year and is looking to raise up to Rs 4,200 crore through the public issue.

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IPO Progress:

The company is also in talks to raise $50 million to $60 million in a pre-IPO funding round. The capital raise is expected to strengthen its balance sheet and provide a partial exit opportunity for some early investors.

SEBI on July 9 gave its observations on the confidential draft red herring prospectus (DRHP) filed by Zetwerk. Now the company can move on to the next steps of the listing process like filing an updated DRHP for public comments before filing the final Red Herring Prospectus (RHP) under the confidential filing mechanism.

Founded in 2018 by Amrit Acharya, Srinath Ramakkrushnan, Vishal Chaudhary, Ankit Fatehpuria and Rahul Sharma, Zetwerk runs a technology-enabled manufacturing platform that connects industrial customers with a distributed supplier network spanning sectors such as energy, electronics, defence, aerospace and capital goods.

From a digital manufacturing marketplace to an integrated manufacturing platform, the company has evolved. It also manufactures laptops, hearables, wearables and IT hardware and produces printed circuit boards (PCBs) through its proprietary Zetwerk OS platform that takes care of sourcing, production planning, supplier coordination and project execution.

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Growth Outlook:

Zetwerk is backed by investors like Khosla Ventures, Accel, Lightspeed, Baillie Gifford, Peak XV and Rakesh Gangwal.

The company reported a gross merchandise value (GMV) of Rs 12,798 crore for FY25 versus Rs 14,443 crore in FY24. Its net loss narrowed to Rs 371 crore from Rs 918 crore a year ago.

Earlier, co-founder and Chief Executive Officer Amrit Acharya said the company expects to cross $2 billion in revenue in FY26 driven by manufacturing contracts around AI data centres.

SEBI has also approved the IPO proposals of Marri Retail, Tonbo Imaging India and Gujarat Victory Forgings during the week. Marri Retail received the observations on July 10, Zetwerk on July 9, Gujarat Victory Forgings on July 8 and Tonbo Imaging India on July 6.

Under SEBI’s confidential filing framework, companies have a time period of up to 18 months to launch their IPO from the date of receiving observations, as against the 12 months validity available under the standard filing route.