Incorporated in 2017, Bengaluru-based Zetwerk Manufacturing Businesses is a technology-led global manufacturing platform. It operates as a managed marketplace connecting industrial and consumer enterprises with a global network of manufacturing partners for custom and large-scale production requirements.
Ahead of its IPO, Zetwerk raised Rs 2,251.23 crore from 99 anchor investors as it allocated 14.90 crore equity shares at Rs 151 per share. Its anchor book included names like SBI MF, ICICI Pru MF, HDFC MF, Capital Asian Horizon, American Insurance Series, Smallcap World Fund, Blackrock, Abu Dhabi Investment Authority, Government Pension Fund, Goldman Sach, Manulife Global Fund and more.
For the quarter ended on June 30, 2026, Zetwerk reported a net loss of Rs 732.98 crore with a revenue of Rs 4,195.70 crore. The company reported a net loss of Rs 1,606.17 crore with revenue of Rs 16,100.63 crore for the financial year ended on March 31, 2026. At the current valuations, Zetwerk is commanding a market capitalization of more than Rs 25,500 crore.
Zetwerk has reserved 75 per cent of the net issue for qualified institutional bidders, while non-institutional investors will get 15 per cent allocation. Retail investors will get only 10 per cent reservation in the IPO. Last heard, Zetwerk was commanding a grey market premium (GMP) of Rs 19-21 per shares, suggesting 12-13 per cent listing gains for the investors.
Kotak Mahindra Capital, Morgan Stanley India, Goldman Sachs (India), Avendus Capital, JM Financial, HSBC Securities and Capital Markets and Pantomath Capital are the book running lead managers and Kfin Technologies is the registrar of the issue. Shares of the company shall be listed on both NSE Ltd and BSE Ltd on Friday, October 23. Here's what brokerage firms have to say on it:
ICICIDirect Research
Rating: Subscribe
Zetwerk is a technology led manufacturing platform that is positioned as a proxy of increasing domestic manufacturing, along with select global opportunities. It has built a unique hybrid model that enables it to scale in a relatively asset light manner. Most of the cost is upfront, which shall bring operating leverage to play as it scales and capacity utilization improves, said ICICIDirect Research.
"Growth in manufacturing division and esp. own manufacturing trajectory will play a key role in margin improvement. We assign a 'subscribe' rating to the issue," it added citing reliance on third-party suppliers for manufacturing and raw materials and dependence on the performance of other industries as key risks.
SBI Securities
Rating: Subscribe for long-term
Its high operating leverage implies that incremental revenue can translate into faster profitability growth. The proposed debt repayment should significantly reduce finance costs and support improvement in PAT in FY27. Its diversified end-market exposure, hybrid manufacturing model, global supplier network and proprietary Zetwerk OS support long-term growth, said SBI Securities.
"The issue is valued at FY26 EV/EBITDA, EV/Sales and Price/Sales multiples of 66.5 times, 1.4 times and 1.6 times respectively. Considering its scalable platform, improving operating performance and potential earnings improvement following debt repayment, we recommend investors 'subscribe' to this issue with a long term investment horizon," it added.
BP Equities
Rating: Avoid
"While the company offers exposure to the long-term manufacturing opportunity, persistent losses, volatility in financial performance and uncertainty regarding the timing of a sustainable turnaround warrant caution. Given the absence of positive earnings and limited visibility on near-term profitability, we assign an 'avoid' rating to the issue, said BP Equities.
Swastika Investmart
Rating: Neutral
Zetwerk is priced at roughly 1.6 times FY26 revenue. Traditional EMS peers trade at P/S multiples of 3.5-6 times due to net profitability. Its lower P/S multiple reflects its lower operating margin profile and ongoing net losses. Its net losses remain a major concern; consolidated loss stood at Rs 1,606 crore in FY26, continuing operations Q1FY27 loss came in at Rs 64 Crore, said Swastika Investmart.
"In FY26, interest burdens severely eroded operating returns. Eliminating the bulk of these high-cost working capital loans is estimated to save Rs 180–220 Crore annually in finance costs, directly boosting pre-tax profit margins. Subscribing is recommended primarily for portfolios seeking high-beta, long-term industrial growth exposure," it added.
Ventura
Rating: Subscribe
Zetwerk has built a global delivery and manufacturing network powered by technology. As of Fiscal 2026, It operates across 25 countries, backed by a network of 6,979 third-party suppliers and over 20 owned/selected manufacturing facilities across India, the United States, and Mexico, said Ventura.
"Zetwerk served 1,802 customers in FY2026, spanning startups to Fortune 500 companies. It caters to key industrial verticals including utilities, renewable energy, consumer electronics, artificial intelligence (AI) infrastructure, aerospace, space & defence, oil & gas, capital goods, and precision manufacturing," it added with a 'subscribe' rating.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.