India’s manufacturing startup ecosystem is moving closer to another major public-market moment, with Bengaluru-based Zetwerk taking a significant step towards its much-anticipated Initial Public Offering (IPO). The company has filed its updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI), proposing to raise up to ₹2,600 crore through a fresh issue of shares. The updated filing comes after Zetwerk received SEBI’s observations in July, clearing a key regulatory hurdle on its path towards a stock-market debut.
The IPO will not be limited to fresh capital. Zetwerk is also proposing an Offer for Sale (OFS) of up to 9.68 crore equity shares, allowing existing shareholders to sell part of their holdings. This gives the public issue a dual purpose — bringing fresh money into the business while also creating an exit opportunity for some early investors. The final issue size, pricing and valuation will be determined closer to the launch.
What makes the ₹2,600-crore fresh issue particularly significant is where Zetwerk plans to deploy the money. Around ₹1,250 crore is earmarked for repayment of debt at the company level, while another ₹550 crore will go towards borrowings at its subsidiaries. The remaining funds are planned for potential acquisitions and general corporate purposes. In other words, a sizeable portion of the IPO is aimed at strengthening Zetwerk’s balance sheet even as the company prepares for its next phase of expansion.
Founded in 2018 by Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma, Vishal Chaudhary and Ankit Fatehpuria, Zetwerk began as a technology-driven B2B manufacturing marketplace but has evolved into a broader manufacturing platform. It connects enterprise customers with manufacturing suppliers across industries including energy, electronics, defence, aerospace and capital goods. Its technology platform helps manage sourcing, production planning, supplier coordination and project execution.
The company’s scale has also expanded rapidly. According to a CRISIL rating report, Zetwerk’s operating revenue was estimated at ₹15,900 crore in FY26, up from ₹12,800 crore in FY25. Its order book stood at more than ₹12,000 crore, with the company expecting to execute those orders over the following 12–18 months. The growth came as Zetwerk exited certain non-profitable businesses and reduced its exposure to civil infrastructure, while focusing more heavily on energy, precision manufacturing, capital goods and other core segments.
However, the IPO story is not without challenges. CRISIL has maintained an ‘A-/Negative’ outlook on Zetwerk’s long-term debt ratings, pointing to weak profitability and debt-protection metrics. Its operating margin was around 2.6%, while debt was estimated at roughly ₹2,700–2,800 crore as of March 2026. The planned debt repayment through the IPO therefore becomes an important part of Zetwerk’s strategy to improve its financial profile.
Zetwerk’s IPO journey has already been closely watched by investors. The company had initially been reported to be considering a much larger public issue, with estimates ranging up to ₹4,200–5,000 crore. The latest UDRHP now puts the fresh issue at up to ₹2,600 crore, alongside the proposed OFS. This evolution reflects how IPO structures can change during the regulatory and pre-listing process.
With the updated IPO papers now filed, Zetwerk has moved considerably closer to becoming one of India’s most prominent publicly listed manufacturing-focused new-age companies. Its eventual listing will be more than another startup IPO — it will also serve as a test of how public-market investors value India’s emerging contract-manufacturing and industrial-tech businesses. If Zetwerk can translate its large order book and expanding manufacturing footprint into stronger and more consistent profitability, its public-market debut could become an important marker for India’s ambition to build a globally competitive manufacturing ecosystem.
