Zetwerk Manufacturing Businesses Ltd. has started investor roadshows for its initial public offering (IPO) and is targeting a launch by the end of September 2026, although the issue could move closer to mid-October depending on investor feedback and market conditions. The Bengaluru-headquartered, technology-led manufacturing platform is backed by investors including Peak XV Partners and Accel and is seeking to become one of India’s notable manufacturing-tech companies to enter the public markets this year.
The proposed IPO comprises a fresh issue of shares worth up to ₹2,600 crore and an offer for sale (OFS) of up to 9.68 crore shares by founders and existing investors. Zetwerk plans to use ₹1,250 crore of the fresh proceeds to repay borrowings at the company level and another ₹550 crore to repay debt at nine subsidiaries. The remaining funds are earmarked for potential acquisitions, strategic investments and general corporate purposes.
Zetwerk IPO: Key Details
Zetwerk’s investor roadshows mark a significant step toward the company’s public-market debut. The roadshow process allows the company and its investment banks to present its business model, financial performance, growth strategy and IPO plans to institutional investors before determining the final issue structure and pricing.
The company had confidentially filed its draft IPO papers earlier in 2026 and subsequently received SEBI’s observations in July. It filed an updated draft red herring prospectus on August 13, bringing the proposed ₹2,600 crore fresh issue and the 9.68 crore-share OFS into the public domain.
Zetwerk IPO At A Glance
| Particular | Details |
|---|---|
| Company | Zetwerk Manufacturing Businesses Ltd. |
| IPO type | Fresh issue + Offer for Sale |
| Fresh issue | Up to ₹2,600 crore |
| Offer for sale | Up to 9.68 crore shares |
| Roadshows | Started |
| Earliest targeted launch | September-end 2026 |
| Possible launch | Mid-October 2026 |
| Company headquarters | Bengaluru |
| FY26 operating revenue | ₹15,913.32 crore |
| FY26 reported total loss | ₹1,606.17 crore |
| FY26 manufacturing order book | ₹12,370 crore |
| Suppliers | 6,979 across 26 countries |
| Owned manufacturing facilities | 26 across 4 countries |
The September-end target is therefore not a fixed listing date. The final launch could shift toward October depending on market conditions and the outcome of the investor marketing process.
How Zetwerk Plans To Use The IPO Money
Debt repayment is the largest identified use of the fresh capital.
Zetwerk intends to allocate ₹1,250 crore toward borrowings at the parent company level. Another ₹550 crore will be used to repay debt at nine subsidiaries. Together, the two repayments account for ₹1,800 crore, or roughly 69% of the proposed ₹2,600 crore fresh issue.
The remaining ₹800 crore is intended for unidentified acquisitions, strategic investments and general corporate purposes.
Proposed Fresh Issue Allocation
| Use of Proceeds | Amount | Approx. Share Of Fresh Issue |
|---|---|---|
| Repayment of company borrowings | ₹1,250 crore | 48.1% |
| Repayment of subsidiary debt | ₹550 crore | 21.2% |
| Acquisitions and strategic investments | ₹800 crore* | 30.8% |
| Total | ₹2,600 crore | 100% |
*Includes the portion earmarked for unidentified acquisitions, strategic investments and general corporate purposes.
The debt-repayment component means the IPO is not purely a growth-capital exercise. A substantial portion of the money raised from new shareholders would be used to reduce existing financial obligations.
Founders And Investors Will Also Sell Shares
Alongside the fresh issue, Zetwerk’s IPO will include an OFS of up to 9.68 crore shares. Unlike the fresh issue, money raised through the OFS goes to the selling shareholders rather than the company.
The largest identified OFS seller is promoter-group entity Creovate Innovation, which plans to sell up to 2.30 crore shares. Co-founders Amrit Acharya and Srinath Ramakkrushnan are each offering up to 1.42 crore shares.
Other selling investors include Peak XV, Accel, Lightspeed and Kae Capital, among others.
Major OFS Sellers
| Seller | Shares Offered |
|---|---|
| Creovate Innovation | Up to 2.30 crore |
| Amrit Acharya | Up to 1.42 crore |
| Srinath Ramakkrushnan | Up to 1.42 crore |
| Peak XV | Part of OFS |
| Accel | Part of OFS |
| Lightspeed | Part of OFS |
| Kae Capital | Part of OFS |
| Other investors | Balance |
The OFS will provide an exit opportunity to some existing shareholders while allowing new public investors to acquire shares in the company.
Zetwerk’s Revenue Jumped 40% In FY26
The company’s financial performance presents a mixed picture, with rapid revenue growth alongside a large reported loss.
Zetwerk’s revenue from operations increased 40.43% to ₹15,913.32 crore in FY26, compared with ₹11,332 crore in the previous year. The growth was driven by businesses including renewable energy, power transmission and AI infrastructure.
However, its reported total loss widened substantially to ₹1,606.17 crore in FY26 from ₹370.71 crore. The reported loss included non-cash exceptional charges related to share-conversion adjustments and an impairment connected with the company’s discontinued civil infrastructure business.
Zetwerk Financial Snapshot
| Metric | FY25 | FY26 | Change |
|---|---|---|---|
| Revenue from operations | ₹11,332 crore | ₹15,913.32 crore | +40.4% |
| Reported total loss | ₹370.71 crore | ₹1,606.17 crore | Higher loss |
| Adjusted EBITDA | — | ₹421 crore | — |
| Adjusted PBT | — | ₹45.7 crore | Positive |
| Manufacturing order book | — | ₹12,370 crore | Strong growth |
The distinction between reported and adjusted profitability will be important during the IPO because the company says some of the large FY26 charges were non-cash or related to discontinued operations. Its adjusted profit before tax turned positive at ₹45.7 crore, while adjusted EBITDA rose to ₹421 crore.
Manufacturing Order Book Doubles
One of the strongest indicators in Zetwerk’s IPO story is the expansion of its manufacturing order book.
The company’s manufacturing order book reached ₹12,370 crore in FY26, compared with ₹6,170 crore in FY24. That represents roughly a doubling over two years and provides visibility into future manufacturing activity.
International markets also contributed nearly 30% of manufacturing revenue, giving Zetwerk exposure beyond the Indian market.
ZETWERK MANUFACTURING ORDER BOOK
FY24 ₹6,170 crore
│
│ ~2x increase
▼
FY26 ₹12,370 crore
A growing order book can provide stronger revenue visibility, but investors will still need to examine margins, customer concentration, execution requirements and working-capital needs.
AI Infrastructure Is Emerging As A Growth Driver
Zetwerk’s manufacturing business has increasingly benefited from investment in infrastructure associated with artificial intelligence.
The company operates across sectors including renewable energy, consumer electronics, AI infrastructure, aerospace, defense, oil and gas and industrial automation. The company has previously said that manufacturing contracts linked to AI data centers were expected to contribute significantly to FY26 growth.
This places Zetwerk at an intersection between manufacturing outsourcing and the global expansion of physical infrastructure required for AI computing.
Demand for equipment such as power infrastructure and other components required by data centers can create opportunities for contract manufacturers capable of coordinating multiple suppliers and manufacturing facilities.
Zetwerk’s Asset-Light Manufacturing Model
Zetwerk describes itself as a technology-led, asset-light manufacturing platform. Instead of relying exclusively on a single centralized factory network, the company connects industrial customers with third-party suppliers while also operating its own manufacturing facilities.
Its proprietary Zetwerk OS platform is designed to coordinate sourcing, production planning, supplier management and project execution.
As of March 2026, the company had 6,979 suppliers across 26 countries and 26 owned manufacturing facilities across four countries.
Zetwerk’s Manufacturing Network
| Metric | Scale |
|---|---|
| Third-party suppliers | 6,979 |
| Countries with suppliers | 26 |
| Owned manufacturing facilities | 26 |
| Countries with owned facilities | 4 |
| International share of manufacturing revenue | ~30% |
| FY26 manufacturing order book | ₹12,370 crore |
The combination of technology and distributed manufacturing capacity is central to Zetwerk’s pitch to investors.
From Manufacturing Marketplace To Industrial Platform
Zetwerk was founded in 2017 by Amrit Acharya and Srinath Ramakkrushnan and has expanded significantly from its original manufacturing-network model.
The company now serves several industrial sectors and has developed capabilities across electronics, energy, heavy manufacturing and other areas. It also operates manufacturing facilities of its own, making its business model increasingly integrated rather than purely marketplace-based.
This evolution could be important for the company’s valuation because investors may increasingly compare Zetwerk with industrial technology and manufacturing companies rather than only with traditional contract-manufacturing intermediaries.
IPO Valuation Will Be Closely Watched
Zetwerk’s valuation will be one of the biggest questions during the investor roadshow.
Earlier reports had indicated that the company was targeting an IPO valuation of around $3 billion, although the final valuation will depend on the price band, investor demand and market conditions. Business Standard reported in March that Zetwerk was valued at about $3 billion in fundraising discussions.
The company is entering the market after a strong year of revenue growth, but investors will also have to account for its reported FY26 loss.
The eventual IPO pricing will therefore need to balance the company’s growth prospects against profitability, debt, cash generation and the risks inherent in a capital-intensive manufacturing ecosystem.
The IPO Comes During A Busy Indian Primary Market
Zetwerk is entering India’s public markets during a period of strong IPO activity.
The company received SEBI approval in July after filing through the confidential route, clearing a major regulatory hurdle. Its bankers include Kotak Mahindra Capital, JM Financial, Avendus Capital, Pantomath Capital and the Indian arms of HSBC, Morgan Stanley and Goldman Sachs.
The roadshow now becomes particularly important because institutional investors will assess Zetwerk against other companies competing for capital in India’s primary market.
Market conditions in September and October could ultimately determine whether the company proceeds with its earliest targeted timeline or waits for a more favorable window.
The Bigger Picture
Zetwerk’s planned IPO represents the public-market test of India’s emerging technology-enabled manufacturing model. The company’s 40% revenue growth, expanding order book and exposure to renewable energy, electronics and AI infrastructure provide a strong growth narrative, while its large FY26 reported loss and substantial debt-repayment requirement create important questions around profitability and capital efficiency.
The IPO also illustrates how India’s startup ecosystem is maturing beyond consumer internet businesses. Zetwerk is taking a technology-led approach to a traditionally fragmented manufacturing sector, using software, supplier networks and owned facilities to serve large industrial customers. If the public issue succeeds, it could provide a benchmark for other Indian manufacturing-tech companies considering the stock market.
Looking Ahead
The immediate focus will be Zetwerk’s investor roadshows and the company’s decision on the final IPO launch window. September-end is currently the earliest target, while sources cited by Moneycontrol said the issue could move closer to mid-October depending on roadshow progress and market conditions. Investors will also await the final price band and valuation before assessing the attractiveness of the offer.
Longer term, Zetwerk will need to demonstrate that its rapid revenue expansion can translate into sustainable profitability and cash generation. The ₹2,600 crore fresh issue provides an opportunity to reduce debt and fund acquisitions, but the company will ultimately be judged on how efficiently it converts its expanding manufacturing network, ₹12,370 crore order book and exposure to high-growth areas such as AI infrastructure into durable shareholder value.
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