Zetwerk IPO: Rs 2,600 Cr Offering Amidst Widening Losses

Zetwerk, the Bengaluru-based B2B technology-led contract manufacturing platform, has filed updated IPO documents with SEBI, proposing a public offering that includes a fresh issue of shares worth up to Rs 2,600 crore.

The company’s Updated DRHP-I, dated August 13, 2026, also details an offer for sale (OFS) of up to 96.84 million equity shares by existing shareholders.

Structuring the Public Offering

The offer for sale component includes significant participation from promoters and key investors.

• Promoters Amrit Pratik Acharya and Srinath Ramakkrushnan will each offer up to 14.23 million shares.
• Creovate Innovation Private Limited is set to sell up to 22.97 million shares.
• These three entities collectively account for 51.44 million shares, representing just over 53% of the maximum shares in the OFS.
• Additional selling shareholders include Peak XV Partners Investments V, Accel India V (Mauritius), Lightspeed Venture Partners Select IV Mauritius, Lightspeed India Partners II, and Kae Capital Fund II.

Zetwerk also retains the option to raise up to Rs 520 crore through a pre-IPO placement, which would subsequently reduce the fresh issue amount.

Strategic Capital Deployment

The net proceeds from the fresh issue are earmarked for several strategic initiatives aimed at strengthening the company’s financial position and fostering growth.

• Approximately Rs 1,250 crore will be allocated to repay or prepay company-level borrowings.
• An additional Rs 550 crore is designated for borrowings at specified subsidiaries.
• The remaining funds are intended for inorganic growth through strategic acquisitions and general corporate purposes.

Key Financial Performance Metrics

The company’s latest financial disclosures reveal a mixed performance, indicating robust revenue growth alongside widening losses.

• Revenue from continuing operations: Increased 40.43% to Rs 15,913.32 crore in FY26 from Rs 11,331.86 crore in FY25.
• Adjusted EBITDA: Rose to Rs 421.34 crore in FY26 from Rs 322.59 crore, though the margin narrowed to 2.65% from 2.85%.
• Restated loss from continuing operations: Widened to Rs 964.39 crore in FY26 from Rs 215.07 crore in FY25.
• Restated loss for the year (including discontinued operations): Expanded to Rs 1,606.17 crore in FY26 from Rs 370.71 crore.

Manufacturing Segment Drives Growth

Despite the overall losses, Zetwerk’s core manufacturing business demonstrated substantial expansion, underscoring its operational strengths.

• Manufacturing business revenue surged 50.02% to Rs 9,374.68 crore in FY26 from Rs 6,249.10 crore in the previous year.
• The Energy Products vertical emerged as the largest contributor, generating Rs 6,507.57 crore in FY26.

The company’s manufacturing order book also saw significant growth, reaching Rs 12,370.01 crore in FY26, up from Rs 8,628.98 crore in FY25 and Rs 6,169.75 crore in FY24.

International markets contributed 29.60% of the manufacturing business revenue in FY26, highlighting global reach. As of March 31, 2026, Zetwerk operated 26 owned manufacturing facilities across India, Spain, Germany, and the US, supported by 6,979 third-party suppliers across 26 countries.

Zetwerk’s decision to proceed with its IPO, despite substantial losses, signals a strategic bet on its rapidly growing manufacturing segment and international expansion capabilities.

The capital infusion aims to address debt and fuel inorganic growth, positioning the company for future scale amidst its evolving financial landscape.