Contract manufacturing startup Zetwerk received Sebi (Securities and Exchange Board of India) approval on Friday for its initial public offering (IPO), clearing the way for one of the largest listings by a new-age manufacturing company.
The proposed IPO is expected to be around Rs 5,000 crore, including Rs 2,700-2,800 crore in fresh capital, with the remaining portion likely to be an offer for sale (OFS) by existing shareholders, ET had reported earlier . The final issue size, selling shareholders, and valuation will be determined closer to the launch through the book-building process.
Zetwerk had submitted its pre-filed draft red herring prospectus (DRHP) through Sebi’s confidential filing route in late March. It has appointed Kotak Mahindra Capital, Goldman Sachs, Pantomath Investment Banking, Morgan Stanley, HSBC, and JM Financial as merchant bankers for the issue.
Sebi’s approval comes as India’s IPO market begins to rebound after a subdued first half in 2026 amid geopolitical uncertainty, weak foreign flows, and valuation concerns. While new-age companies like PhonePe, Flipkart, and Curefoods have paused IPO plans, startups like Zepto, and Oyo’s parent PRISM are gearing up for potential listings in the coming months.
Ahead of the market debut, the Bengaluru-based company has been in discussions to raise about Rs 500 crore from late stage investor Bharat Value Fund and a group of high-net-worth individuals (HNIs) at a valuation of Rs 25,000-26,000 crore, or about $3 billion, ET reported in March. This is broadly similar to its previous private-market valuation, reflecting the cautious pricing environment for new-age IPOs.
Also Read: Contract maker Zetwerk set to pump Rs 500–800 crore for component making
In July 2025, founders Amrit Acharya and Srinath Ramakkrushnan infused Rs 600 crore into the company by raising personal debt, increasing their combined stake by about two percentage points.
Before this, Zetwerk raised close to $90 million in late 2024 from investors like Khosla Ventures, IndiGo cofounder Rakesh Gangwal, and Baillie Gifford at a valuation of about $3.1 billion. Its other investors include Accel, Peak XV Partners, Lightspeed Venture Partners, Greenoaks, Avenir Growth Capital, D1 Capital, and Kae Capital. So far the startup has raised about $912 million.
The company’s operating income is estimated to have risen to Rs 15,900 crore in FY26 from Rs 12,800 crore in the previous year, according to Crisil Ratings. In FY25, its net loss narrowed to Rs 371 crore from Rs 918 crore, even as revenue declined after it exited lower-margin businesses such as civil engineering, procurement, and construction projects. Its order book stood at more than Rs 12,000 crore as of March.
Founded in 2018 by IIT alumni Acharya, Ramakkrushnan, Rahul Sharma, and Vishal Chaudhary, with Ankit Fatehpuria later elevated as the fifth cofounder, Zetwerk connects enterprise customers with manufacturing suppliers across energy, electronics, defence, aerospace, and capital goods sectors.
Zetwerk’s customers include Acer, Noise, CG Power Solutions, Schneider Electric, and Siemens, among others. The company said it operates over 20 facilities across India, US, Mexico, and Europe, serving about 19 countries.
