Zetwerk Manufacturing Businesses has attracted a strong mix of global asset managers, sovereign wealth funds and domestic institutions to its Rs 2,251 crore anchor book ahead of its initial public offering (IPO), with Capital Group emerging as one of the notable names in the allocation.
Two arms of Capital Group — Capital Research and Capital World — received an allocation worth around Rs 288 crore, accounting for nearly 12.88% of the total anchor book. The US-based asset manager is among the largest active investment managers globally, making its participation a key highlight of Zetwerk’s anchor allocation.
The anchor book also saw participation from 3P India Equity Fund, founded by veteran investor Prashant Jain, who previously headed investments at HDFC Mutual Fund for nearly three decades. His participation adds to the domestic investor interest in Zetwerk’s IPO.
The round also saw participation from some of the biggest names in global investing, including BlackRock, Goldman Sachs, Nomura, Société Générale, First State, Loomis Sayles, Manulife, Carmignac, Eastspring Investments, Susquehanna and Prudential Assurance.
Sovereign wealth funds also participated in the anchor book, including Norway’s Government Pension Fund Global and Abu Dhabi Investment Authority (ADIA). Both are long-term institutional investors that invest across markets and asset classes.
The company allotted 14.91 crore equity shares to 99 anchor investors at Rs 151 apiece, the upper end of its price band. The anchor book accounts for around 45% of its Rs 5,012 crore IPO.
Domestic institutions accounted for a significant share of the allocation. Twenty-two mutual funds were allotted around 45.6% of the anchor book, worth approximately Rs 1,027 crore. These included SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, UTI Mutual Fund, Mirae Asset, and Franklin Templeton. Seven life insurance companies, including SBI Life Insurance, ICICI Prudential Life Insurance and Axis Max Life Insurance, also participated.
The breadth of participation is notable as global asset managers, sovereign wealth funds, mutual funds and insurers operate under different mandates and assess investment risks differently. Their participation ahead of the public issue, at the upper end of the price band, points to institutional interest in Zetwerk’s IPO.
Zetwerk’s IPO comprises a fresh issue of Rs 2,830 crore and an offer for sale (OFS) of 14.45 crore shares worth around Rs 2,182 crore.
Founded in 2018, Zetwerk operates a manufacturing platform serving sectors such as renewable energy, consumer electronics, aerospace, defence and industrial automation. Its revenue from operations rose 55.4% year-on-year to Rs 4,118 crore in Q1 FY27, while its loss from continuing operations narrowed to Rs 64.1 crore. The company is backed by investors including Khosla Ventures, Greenoaks, Baillie Gifford, Rakesh Gangwal, Accel, Peak XV and Lightspeed.