Zetwerk Manufacturing Business IPO

SEBI has approved the Initial Public Offer (IPO) of Zetwerk Manufacturing Business Ltd., which was filed under the confidential pre-filing route, on July 9, 2026. The approval is valid for 18 months. The IPO will be a book-built issue, with the equity shares proposed to be listed on the NSE and BSE. 

Kotak Mahindra Capital Co. Ltd. is the book-running lead manager for the issue. 

Zetwerk Manufacturing Business IPO Important Dates

Yet to be announced. 

About Zetwerk Manufacturing Business

Zetwerk Manufacturing Businesses Limited operates a tech-enabled B2B managed manufacturing marketplace that connects original equipment manufacturers (OEMs) and enterprise buyers with small and medium-sized enterprise (SME) factories for custom manufacturing requirements.

Unlike a traditional listing platform, Zetwerk manages the manufacturing process from start to finish. Its services cover design, procurement, quality control, production tracking and logistics across industries such as renewable energy, consumer electronics, aerospace, defence and industrial machinery.

The company uses its proprietary project management software to give buyers real-time visibility into production and supply chains. By digitising workflows and matching orders with suitable capacity across its supplier network, Zetwerk aims to reduce lead times and operating costs for buyers while helping suppliers improve factory utilisation.

Zetwerk primarily earns revenue through transaction margins and order execution fees on contracts processed through its network. It also generates income from value-added services, including project management and specialised supply chain solutions.

Zetwerk Manufacturing Business IPO Objectives

Based on Zetwerk Manufacturing Businesses Limited’s U-DRHP, the company plans to raise ₹2,600 crore through a Fresh Issue. The proceeds will be used as follows:

1. ₹1,250 crore will be used to repay or prepay certain borrowings of Zetwerk, helping reduce finance costs and strengthen its balance sheet.
2. ₹550 crore will be used to repay or prepay debt of specified subsidiaries and optimise their overall debt position.
3. The remaining proceeds will be used for potential acquisitions and strategic initiatives to expand the company’s product capabilities, technology and global manufacturing footprint.
4. A portion of the proceeds will be used for general corporate purposes, including working capital needs, operational expenses, business integration and offer-related costs.
5. The IPO also includes an OFS of up to 9.68 crore equity shares, with the proceeds going directly to the selling shareholders.
6. Zetwerk may undertake a Pre-IPO placement of up to ₹520 crore before filing the RHP; if completed, the amount raised will be deducted from the ₹2,600 crore Fresh Issue.

Industry Outlook

The company operates in the supply chain logistics industry.

1. The global logistics market is expected to reach $8.1 trillion to $12.6 trillion over the next decade, growing at a 5% to 8% CAGR, supported by rising trade, manufacturing and cross-border e-commerce.
2. The 4PL market is growing at around 12.8% CAGR, while AI-powered logistics solutions are improving inventory accuracy and reducing customs delays through automation.
3. Geopolitical tensions and tariff risks are driving companies towards regional sourcing and nearshoring, with the APAC region expected to account for nearly 49% of incremental market growth.
4. Labour shortages are accelerating warehouse automation, with global installations of autonomous mobile robots and automated logistics systems growing by more than 35% annually.
5. The contract logistics market is projected to exceed $620 billion by 2035, while B2B contract manufacturing is expected to grow at an 11.87% CAGR through 2034, driven by increasing enterprise outsourcing.

Financial Performance of Zetwerk Manufacturing Business

Zetwerk Manufacturing Business Peer Comparison

According to Zetwerk's Updated Draft Red Herring Prospectus (UDRHP-1), the company does not have exact directly comparable listed peers in India operating an identical tech-enabled, managed contract-manufacturing marketplace model. 

Strengths and Opportunities for Zetwerk Manufacturing Business 

1. Zetwerk has a large manufacturing network of 6,979 third-party suppliers and 26 owned facilities across India, the US, Germany and Spain.
2. The manufacturing order book doubled to ₹12,370 crore in FY26 from ₹6,170 crore in FY24.
3. Repeat customers contributed 80.15% of FY26 manufacturing revenue, while Net Revenue Retention (NRR) stood at 120%.
4. The company serves 8 BSE Sensex companies, 16 Nifty 50 companies and 102 Fortune 500 India companies.
5. Its top 10 customers have an average relationship of 3 years and contributed 36% of overall revenue.
6. Its proprietary Zetwerk OS, including ZISO and ZeTracker, helps standardise workflows and coordinate production across its supplier network.
7. The China+1 trend could help Zetwerk capture more export manufacturing orders from Western OEMs seeking alternative supply chains.
8. Growing demand for renewables, solar manufacturing, power transmission and data centre infrastructure could support further growth, with these segments contributing 69.42% of core Manufacturing revenue in FY26.
9. Expansion into aerospace, defence and high-tech electronics manufacturing could improve the company’s exposure to specialised and potentially higher-margin businesses.
10. The fresh IPO proceeds could support strategic acquisitions of specialised technologies and manufacturing assets across new geographies.

Risks and Threats for Zetwerk Manufacturing Business

1. The company reported a restated net loss of ₹1,606.17 crore in FY26, up sharply from ₹370.71 crore in FY25 and ₹917.95 crore in FY24, mainly due to accounting charges and non-cash valuation adjustments.
2. Promoters Amrit Acharya and Srinath Ramakkrushnan have pledged nearly one-third of their combined stake, creating a risk of forced share sales if market conditions turn volatile.
3. Zetwerk relies on 6,979 third-party suppliers across 26 countries, making it vulnerable to delays, quality issues and financial problems at supplier factories.
4. The business requires significant working capital to manage the gap between customer payments and supplier payouts, with borrowings rising to ₹1,936.16 crore in FY26 from ₹1,232.10 crore in FY24.
5. The top five customers contributed 26.87% of FY26 revenue, making the company vulnerable to a decline or loss of any major customer.
6. Zetwerk takes responsibility for design, production quality and logistics despite not owning most supplier facilities, exposing it to penalties and losses from supplier-related delays or quality issues.
7. Rapid expansion and working capital requirements have put pressure on operating cash flows, increasing the company’s reliance on external debt and equity funding.
8. Expansion through acquisitions in the US, Spain and Germany brings integration challenges, along with cultural and regulatory risks across different markets.
9. Heavy reliance on Zetwerk OS makes the business vulnerable to system outages, cyberattacks and data breaches that could disrupt order tracking and fulfilment.
10. The US contributed 14.33% of FY26 revenue, exposing Zetwerk to tariffs, trade restrictions, anti-dumping duties and higher global shipping costs.
11. Volatility in steel, aluminium and electronic component prices could pressure margins, especially as gross margins remain relatively low at around 12.4%.
12. Around 69.4% of manufacturing revenue comes from sectors linked to large capital spending, making order growth vulnerable to economic downturns and delays in infrastructure projects. 

Zetwerk Manufacturing Business IPO Reservation

Not available. 

Zetwerk Manufacturing Business IPO Lead Manager

Kotak Mahindra Capital Co.Ltd is the lead manager for this issue. 

How To Check the Allotment Status of the Zetwerk Manufacturing Business IPO?

1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
3. Select IPO: Find and select the Zetwork Manufacturing Business IPO from the list of open IPOs.
4. Enter the Lot Size: Specify the number of lots you want to bid for.
5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

How To Apply for Zetwerk Manufacturing Business IPO Online?

Steps to check IPO allotment status on Angel One’s app:

1. Log in to the Angel One app.
2. Go to the IPO Section and then to IPO Orders.
3. Select the individual IPO that you had applied for and check the allotment status.
4. Angel One will notify you of your IPO allotment status via push notification and email.

Contact Details of Zetwerk Manufacturing Business IPO

Address: 84/1, Vaishnavi Sovereign, Ground & 1st Floor, Green Glen Layout, Bellandur, Bangalore Urban, Karnataka, 560103

Phone: +91 7624 9748 90

Email: cs@zetwerk.com