Zetwerk Files RHP for Rs 5,012 Crore IPO, Fresh Issue Raised to Rs 2,830 Crore

Khushi Jain
October 12, 2026

Manufacturing platform Zetwerk has filed its Red Herring Prospectus (RHP) for its initial public offering (IPO), comprising a fresh issue of shares worth Rs 2,830 crore.

According to the RHP, the Bengaluru-based company has increased the fresh issue size to Rs 2,830 crore from Rs 2,600 crore proposed in its updated draft red herring prospectus (UDRHP). The offer for sale (OFS) component has also increased by 49% to 14.45 crore shares from 9.68 crore shares proposed in the UDRHP filed in August.

Promoters and Investors to Offload Shares

The OFS will include shares from promoters Amrit Pratik Acharya and Srinath Ramakkrushnan, who will each sell 1.42 crore shares. Promoter group entity Creovate Innovation will offload up to 2.30 crore shares. Together, the three will offer around 5.14 crore shares.

Among existing investors, Lightspeed Venture Partners will offload the largest number of shares at 2.51 crore, followed by Peak XV Partners, which will sell 2.34 crore shares.

Kae Capital Fund and Kalysta Capital Fund will collectively sell up to 1.67 crore shares. Accel India V will also participate in the OFS, offloading up to 1.2 crore shares.

The IPO will open for subscription on October 15, 2026, and close on October 19, 2026. The anchor bidding will begin on October 14.

Use of IPO Proceeds

Zetwerk plans to use Rs 1,300 crore from the fresh issue to repay or prepay borrowings at the company level. Another Rs 860 crore will be allocated towards debt repayment at nine subsidiaries.

The remaining proceeds will be used for acquisitions, strategic investments and general corporate purposes.

Zetwerk’s Business and Financial Performance

Founded in 2017 by Acharya and Ramakkrushnan, Zetwerk operates a technology-led manufacturing platform that connects businesses with manufacturers and suppliers across sectors such as energy, electronics, aerospace, defence and industrial automation.

The company’s revenue from continuing operations rose to Rs 15,913 crore in FY26 from Rs 11,332 crore in FY25.

In Q1 FY27, revenue from operations grew 55% year-on-year to Rs 4,118 crore. Losses from continuing operations declined 93% to Rs 64 crore from Rs 881 crore in the year-ago quarter.

FAQs

1. How much is Zetwerk looking to raise through its IPO?

Zetwerk aims to raise around Rs 5,012 crore through its IPO, including a fresh issue of Rs 2,830 crore and an offer for sale of 14.45 crore shares.

2. How has Zetwerk changed its IPO fresh issue size?

The company increased its fresh issue size to Rs 2,830 crore from Rs 2,600 crore proposed in its UDRHP.

3. When will Zetwerk’s IPO open and close?

The IPO will open for subscription on October 15, 2026, and close on October 19, 2026. Anchor bidding will begin on October 14.

4. How does Zetwerk plan to use the fresh issue proceeds?

Zetwerk plans to use Rs 1,300 crore to repay or prepay company-level borrowings and Rs 860 crore to repay debt at nine subsidiaries. The remaining proceeds will go towards acquisitions, strategic investments and general corporate purposes.

5. How did Zetwerk perform financially in FY26 and Q1 FY27?

Revenue from continuing operations rose to Rs 15,913 crore in FY26 from Rs 11,332 crore in FY25. In Q1 FY27, revenue from operations grew 55% year-on-year to Rs 4,118 crore, while losses from continuing operations declined 93% to Rs 64 crore.

Khushi Jain

Editor

Khushi Jain is an editor at Startup Spotlight India, covering daily news and trending stories across startups and business. She focuses on funding updates, emerging trends, and key developments shaping India’s startup ecosystem.