Zetwerk Files Updated Draft Red Herring Prospectus With SEBI To Raise 2,600 Crore Rupees Through Fresh IPO Issue
The Bengaluru manufacturing platform has moved a step closer to its public listing, filing updated draft papers to raise nearly 2,600 crore rupees as it looks to pare debt and expand its energy and AI infrastructure businesses.
Highlights:
- Zetwerk filed its Updated Draft Red Herring Prospectus with SEBI on August 13
- The IPO comprises a fresh issue worth up to Rs 2,600 crore
- An offer for sale of over 9.6 crore equity shares is also included
- FY26 revenue rose 40.4 percent year on year to Rs 15,913 crore
- Adjusted EBITDA grew 4.3 times over two years to Rs 421 crore
- The company reported a pre tax loss of Rs 916 crore on one off charges
Zetwerk’s path toward a public listing has been unfolding quietly over the better part of this year, and it took another concrete step forward this week. The Bengaluru based, technology led manufacturing platform filed its Updated Draft Red Herring Prospectus, commonly abbreviated as UDRHP, with the Securities and Exchange Board of India, moving the company closer to what would be one of the more closely watched listings among India’s new age manufacturing and industrial technology startups.
The filing itself outlines an initial public offering with two components. The primary piece is a fresh issue of equity shares worth up to Rs 2,600 crore, money the company plans to route largely toward debt reduction, specifically repaying around Rs 1,250 crore of debt sitting at the company level and a further Rs 550 crore spread across its subsidiaries. The remainder of the fresh issue proceeds are earmarked for general corporate purposes and unspecified inorganic growth, language that typically leaves room for future acquisitions without committing to specifics ahead of time. Alongside the fresh issue, the IPO includes an offer for sale of just under 9.7 crore equity shares, through which several existing shareholders will pare down their holdings. That group includes Zetwerk’s promoters, Amrit Pratik Acharya and Srinath Ramakkrushnan, along with the promoter linked entity Creovate Innovation, as well as early institutional backers including Peak XV Partners, Accel, Lightspeed Venture Partners and Kae Capital.
This filing did not arrive out of nowhere either. Zetwerk had first approached SEBI back in March 2026 through the confidential pre filing route, a mechanism that lets companies receive regulatory feedback on their draft prospectus before it becomes public, a route increasingly favoured by larger new age companies preparing for scrutiny heavy listings. Nearly five months on from that initial filing, this week’s UDRHP represents the next formal stage in that process, though it is worth noting that specific details such as the price band, lot size and final offer dates are still not part of this disclosure and will follow in later stages closer to the actual listing window.
Understanding what Zetwerk actually does helps make sense of why this listing has drawn attention. The company operates a technology enabled, asset light manufacturing platform, essentially acting as an intermediary that connects businesses needing custom manufactured components with a distributed network of manufacturing facilities, spanning sectors as varied as electronics, energy, capital goods, aerospace and defence. It runs more than 20 of its own manufacturing facilities and serves over 1,100 customers across more than a dozen countries, with a client roster that includes globally recognised names such as France’s Schneider Electric, Germany’s Siemens, Taiwan’s Acer and India’s own Indian Oil. As of March 2026, the company counted eight Sensex listed companies, 16 Nifty 50 constituents and 102 Fortune 500 companies among its customer base, a scale of enterprise relationships that is relatively rare among Indian startups heading toward an IPO.
The financial picture tells an interesting story of a company scaling rapidly on the back of one segment in particular. Zetwerk’s revenue rose 40.43 percent year on year to Rs 15,913 crore in FY26, up from Rs 11,332 crore the year before, and a large share of that growth came from its Energy Products segment, which sits within its broader renewable manufacturing business. That segment’s revenue climbed to Rs 6,508 crore in FY26 from Rs 3,481 crore in FY25, now accounting for close to 70 percent of the company’s overall manufacturing business revenue, driven heavily by the wider industry wave of capital expenditure tied to renewable energy, power transmission infrastructure, and increasingly, the physical build out required to support artificial intelligence infrastructure. On the profitability side, adjusted EBITDA rose from Rs 97 crore in FY24 to Rs 323 crore in FY25 and further to Rs 421 crore in FY26, a 4.3 times increase over two years that suggests genuine operating improvement rather than growth achieved purely through scale.
There is, however, a less flattering number sitting in the same filing that deserves equal attention rather than being glossed over. Zetwerk reported a pre tax loss of Rs 916 crore for FY26, which the company attributed to one off charges rather than core operating performance. That distinction matters for how investors should interpret the number, a one time charge is fundamentally different from a recurring operating loss, but it is also the kind of disclosure that will likely draw closer questioning as the IPO process moves toward its roadshow stage, since one off charges can sometimes mask underlying issues that are not as isolated as they first appear. The company’s manufacturing order book, meanwhile, doubled over two years, rising from Rs 6,170 crore in FY24 to Rs 12,370 crore in FY26, a forward looking indicator that at least on the demand side, the business has continued to build momentum. International markets accounted for close to 30 percent of Zetwerk’s manufacturing revenue during the year, underlining that this is not a purely domestic story, even as its headquarters and much of its operational footprint remain firmly rooted in India.
The company has also been actively reshaping its business mix. It discontinued its civil infrastructure business during FY26 as part of a strategic realignment, a decision that suggests management has been willing to prune segments that did not fit cleanly with its core manufacturing and energy focused strategy, even at the cost of near term revenue. Zetwerk currently operates through two primary business lines, its core Manufacturing Business and a separate Ecosystem Business branded Terra91, though the filing offers limited additional detail on how the latter contributes to overall performance.
Zetwerk’s listing arrives at a moment when India’s IPO pipeline for new age, technology adjacent companies remains unusually active, with quick commerce player Zepto also having cleared regulatory hurdles for its own public offering around the same period, alongside a broader wave of manufacturing and industrial technology firms testing public market appetite. Viewed even handedly, Zetwerk’s filing paints the picture of a company with genuinely strong underlying fundamentals, rapid revenue growth, expanding margins, a doubling order book and blue chip global customers, set against real near term questions, a significant one off loss, continued dependence on debt reduction as a primary use of IPO proceeds, and heavy concentration in a single fast growing but cyclical energy segment. Whether public market investors reward the growth story or discount it for the concentration risk will likely become clearer only once the company’s price band and final subscription numbers are known, but for now, this filing marks a genuine and substantive step in what has been a long and carefully staged path toward listing.
