Zetwerk IPO: GMP, Price Band, Lot Size, Financials & Review

Zetwerk Manufacturing Businesses Ltd., a contract manufacturing platform founded in 2017, came to market with a ₹5,012.33 crore book-built IPO. The issue combines a fresh issue of ₹2,830 crore with an offer for sale (OFS) of ₹2,182.33 crore by the founders and several venture capital investors. Bidding ran from 15 October 2026 to 19 October 2026 at a price band of ₹143 to ₹151 per share. The basis of allotment is scheduled for 21 October 2026 and listing on BSE and NSE for 23 October 2026. It has reported a net loss in each of the last three financial years, which shapes both the issue structure and how it can be valued.

Zetwerk IPO Details

Small HNI bids start at 14 lots (₹2,09,286) and big HNI bids at 67 lots (₹10,01,583).

Why retail gets only 10%. Most mainboard IPOs reserve at least 35% for retail. Here 75% of the net issue goes to qualified institutional buyers (QIBs), 15% to non-institutional investors and just 10% (3,31,30,716 shares) to retail, the structure SEBI prescribes for companies that do not meet its profit track-record test. Anchor investors took 14,90,88,220 shares, nearly 45% of the net issue, at ₹151. Half of those anchor shares are locked in until 20 November 2026 and the rest until 19 January 2027 (see anchor investor lock-up expiry).

About Zetwerk

Zetwerk takes manufacturing orders from businesses and gets them made, either through its own network of third-party suppliers or in factories it operates. It calls itself a technology-led, asset-light manufacturing platform. Its processes include metal fabrication, machining, forging, die casting and injection moulding, for sectors such as renewable energy, consumer electronics, aerospace and defence, oil and gas and industrial automation. In-house software, Zetwerk OS, matches orders with suppliers and tracks production.

As stated in its offer documents:

• More than 10,000 suppliers and over 20 manufacturing facilities across India, the US and Mexico
• 1,802 customers in FY26, of which 1,613 were in India and 189 outside India
• A presence in more than 25 countries
• Named customers include Siemens Gamesa, boAt, Acer India, CG Power and Industrial Solutions and NTPC Renewable Energy

Financial Performance

Restated consolidated figures, ₹ crore:

Revenue from operations was ₹12,364.37 crore in FY24, ₹11,331.86 crore in FY25 and ₹15,913.32 crore in FY26.

• Growth came back after a dip. Total income fell about 8% in FY25, then rose about 40% in FY26. In the June 2026 quarter it was about 55% higher than a year earlier.
• Losses are mostly below the operating line. Adjusted EBITDA has been positive in every period, but thin: about 2.6% of total income in FY26 and about 2.5% in the June 2026 quarter. The FY26 net loss of ₹1,606.17 crore included an exceptional charge of about ₹836 crore. Published reports of the RHP link this mainly to a non-cash adjustment in the conversion ratio of different share classes.
• Debt has climbed. Total borrowing went from ₹1,232.10 crore in March 2024 to ₹1,942.19 crore in June 2026. Measured against net worth, that is a rise from about 0.30 to about 0.47.

Key Ratios & Valuation

A P/E ratio does not help here, because earnings per share are negative (pre-issue EPS of ₹-10.66). Sales- and book-based measures are more useful. The figures below are our calculations at the upper band of ₹151:

A price-to-sales ratio of about 1.6x can look modest, but on a 2–3% EBITDA margin little of each rupee of revenue reaches operating profit, so the valuation leans heavily on margins improving. No like-for-like listed peer comparison was available, so we have not offered one. Our guide to IPO valuation ratios explains when price-to-sales or EV/EBITDA is a better tool than P/E.

Objects of the Issue

Only the fresh issue money (₹2,830 crore, before issue expenses) goes to the company:

1. Repayment or prepayment of the company's own borrowings: ₹1,300 crore
2. Investment in nine subsidiaries so they can repay their borrowings: ₹860 crore
3. Funding inorganic growth through unidentified acquisitions and other strategic acquisitions
4. General corporate purposes

The OFS proceeds of ₹2,182.33 crore go to the selling shareholders, not to Zetwerk. About 56% of the total issue therefore reaches the company, and about 44% goes to existing holders. Of the money the company receives, ₹2,160 crore is earmarked for debt repayment. That is close to the ₹1,942.19 crore of total borrowing reported for June 2026, which suggests the fresh issue is mainly a deleveraging step rather than a growth-capex raise. See fresh issue vs offer for sale for why this split matters.

Shareholding & Promoters

The promoters are co-founders Amrit Pratik Acharya and Srinath Ramakkrushnan. Promoter and promoter group holding is unusually low for an Indian IPO: 15.86% before the issue, falling to 11.36% after it. Most of the company is held by venture and growth investors.

Who is selling in the OFS (upper band values):

Promoters and promoter entities together account for about 36% of the OFS by value.

Subscription Status

As of 5:07 pm on 16 October 2026 (end of day 2), the issue had been subscribed 0.31 times overall. QIBs stood at 0.37 times, NIIs at 0.17 times, retail at 0.37 times and employees at 0.48 times. Final figures after the 19 October close are on our Zetwerk IPO page; IPO subscription status explained covers how to read them.

Zetwerk IPO GMP Today

As of 17 October 2026, our tracked grey market premium for Zetwerk was ₹7.5, about 4.97% over the upper band. It has fallen from ₹29 on 11 October 2026. GMP is unofficial and unregulated, it can swing sharply from day to day, and it is not a reliable guide to the listing price. Read how accurate IPO GMP is before giving it weight.

Strengths (as stated by the company)

• A model that draws demand from several industries and geographies at once
• Capital-efficient scaling under an asset-light approach
• Deep customer relationships, with Fortune 500 companies among its customers
• Value-added ecosystem services built around its core manufacturing work
• An experienced founding and management team

Risks to Consider

• Continued losses: the company lost ₹917.95 crore, ₹370.71 crore and ₹1,606.17 crore in FY24, FY25 and FY26, and a further ₹732.98 crore in the June 2026 quarter.
• Thin operating margins: adjusted EBITDA of about 2.6% of total income leaves little room for cost overruns, pricing pressure or a slowdown in large orders.
• Uneven revenue: total income fell about 8% in FY25 before rebounding.
• Unidentified acquisitions: part of the proceeds will fund acquisitions that are not yet named, so investors cannot judge them in advance.
• Low promoter stake: at 11.36% post-issue, the founders own a small slice of the company, and large financial investors will hold most of the remaining shares.
• Supply-overhang dates: anchor lock-ins end on 20 November 2026 (50%) and 19 January 2027 (the rest).

How to Check Allotment Status

The basis of allotment is expected on 21 October 2026, with refunds and share credit on 22 October 2026. KFin Technologies is the registrar. You can check your status on our Zetwerk allotment page, or follow the steps in how to check IPO allotment status by registrar.

Disclaimer: This article is for educational purposes only and is not investment advice. GMP is unofficial and can change quickly. Read the RHP and consult a SEBI-registered adviser before investing.