Zetwerk eyes manufacturing demand from AI

Business-to-business manufacturing platform Zetwerk aims to tap demand for components and equipment used in artificial intelligence (AI) infrastructure, clean energy and space projects through its network of factories and suppliers, cofounder and chief executive Amrit Acharya said on Friday as the company made its stock market debut.

“Clean energy requires manufacturing. AI requires manufacturing. Space requires manufacturing,” Acharya said at the listing ceremony.

Shares of the business-to-business manufacturing platform opened at Rs 159 on the BSE, a 5.3% premium to the Rs 151 issue price, and at Rs 159.25 on the NSE. The stock subsequently gave up its gains to trade near the offer price amid weakness in broader markets.

The Rs 5,012-crore initial public offering (IPO) comprised a Rs 2,830-crore fresh issue and a Rs 2,182-crore offer for sale by existing shareholders. The issue valued Zetwerk at Rs 25,583 crore.

Zetwerk will use Rs 2,160 crore, or 76% of the fresh issue, to repay borrowings of the parent and nine subsidiaries. The balance, before issue expenses, is earmarked for acquisitions and general corporate purposes.

The IPO was subscribed 3.06 times. Institutional buyers bid for 4.73 times their allocation, while retail bids covered 73% of the shares reserved for them.

Zetwerk supplies industrial and consumer products through its own factories and third-party manufacturers. The company's 26 manufacturing facilities accounted for 33.2% of manufacturing revenue in fiscal year 2026, compared with 7.1% two years earlier.

Cofounder and chief operating officer Srinath Ramakkrushnan said Zetwerk had set out to “make India a trusted partner for global manufacturing supply chains”.

Independent director Sanjiv Rangrass said his wife and he had backed the founders in 2017 “with a small cheque each”, having known them from their time at ITC.

“I left ITC three years earlier than I otherwise would have. I thought I would devote my time to these people and several others,” said Rangrass, referring to the founders.

Zetwerk’s operating revenue rose 40% to Rs 15,913 crore in fiscal year 2026. June-quarter revenue grew 55% year on year to Rs 4,118 crore. The company reported a net loss of Rs 733 crore, including Rs 669 crore from the discontinued civil infrastructure business. The remaining business lost Rs 64 crore.