Zetwerk Manufacturing Business Ltd MAKES WEAK D-STREET DEBUT

Zetwerk Manufacturing Business made a muted debut on Dalal Street on Friday, October 23, with its shares listing at Rs 159 on both the BSE and NSE, marking a 5% premium over the IPO issue price of Rs 151 per share. The company’s Rs 5,012.33 crore initial public offering comprised a fresh issue of shares worth Rs 2,830 crore and an offer-for-sale of 14.45 crore shares by existing shareholders. At the upper end of the price band, the OFS was valued at approximately Rs 2,182 crore. Zetwerk plans to use the proceeds from the fresh issue to repay debt at the company and its subsidiaries, finance potential acquisitions, and meet general corporate expenses. The IPO witnessed mixed investor demand across categories. The portion reserved for qualified institutional buyers was subscribed 4.73 times, while the non-institutional investor segment received 1.40 times subscription. Meanwhile, the retail investor portion was subscribed 73% of the shares on offer. Ahead of the public issue, Zetwerk raised Rs 2,251.23 crore from anchor investors on Wednesday. The investors included global financial institutions such as BlackRock, Goldman Sachs and Nomura. The company allotted 14.91 crore equity shares to 99 funds at Rs 151 per share, the upper end of the IPO price band. Zetwerk is backed by prominent investors, including Khosla Ventures, Baillie Gifford, Rakesh Gangwal, Accel, Peak XV and Lightspeed. Founded in 2018, the company operates 26 manufacturing facilities across India, the United States, Germany and Spain. It also collaborates with third-party suppliers across several countries to support its manufacturing operations. Its customer base spans multiple industries and includes companies and institutions such as Siemens Gamesa, Acer India, CG Power, NTPC Renewable Energy, L&T MHI Power Boiler, the Defence Research and Development Organisation, the Indian Air Force and Numaligarh Refinery Ltd.