Bengaluru-based contract manufacturer Zetwerk files updated draft red herring prospectus, moving closer to an IPO with approvals for its ₹2,600 crore share offering and plans to reduce debt, amidst rapid revenue growth and widening losses.
Zetwerk has moved a step closer to the stock market after filing its updated draft red herring prospectus, following regulatory approval for its confidential submission to the Securities and Exchange Board of India, according to reports from Moneycontrol, VCCircle and Moneycontrol’s later update on the approval. The Bengaluru-based contract manufacturing platform is seeking to tap public investors through a combination of new shares and a sale by existing holders.
The planned offering includes a fresh issue of shares worth ₹2,600 crore and an offer-for-sale of up to 9.6 crore shares. Existing backers such as Peak XV Partners, Lightspeed Venture Partners and Kae Capital are expected to trim holdings, while founders Amrit Acharya and Srinath Ramakkrushnan will each sell 1.4 crore shares, according to the company’s filing as reported by Inc42. The company said most of the new capital, about ₹1,800 crore, will be used to pay down borrowings, a move that could ease interest costs and reshape earnings.
Zetwerk’s latest numbers show a business still expanding quickly, even as losses widened. Inc42 reported that revenue for fiscal 2026 climbed more than 40% to ₹15,900 crore from ₹11,300 crore a year earlier, with about ₹9,300 crore generated by manufacturing and the rest from its ecosystem and raw-materials business. The same report said net loss rose sharply to 16,061, largely because of a ₹450 crore provision tied to the discontinued civil infrastructure arm and an accounting charge of around ₹800 crore linked to the founders increasing their ownership from 15% to about 20%.
The listing plan has been taking shape for months. Moneycontrol reported in late March that Zetwerk had filed confidentially with the market regulator for an IPO that could raise up to ₹4,200 crore and had lined up bankers including Kotak Mahindra Capital, JM Financial, Avendus Capital, Pantomath Capital and the Indian arms of HSBC, Morgan Stanley and Goldman Sachs. The Economic Times later said the company had been targeting a larger ₹5,000 crore issue and was also weighing a pre-IPO fundraising round, while Business Standard reported that a separate placement of about ₹500 crore had been under consideration. SEBI’s final observations have now cleared one of the main regulatory hurdles, although the final issue size will still depend on book-building and market demand.
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