Zetwerk shares make market debut at up to 5.5% premium over IPO price

Zetwerk Manufacturing Business

shares made their stock market debut on Friday, October 23, after the company's IPO raised over ₹5,000 crore.

The stock opened at ₹159.25 on the NSE, a premium of 5.46% over its IPO price of ₹151. On the BSE, it debuted at ₹159, up 5.30% over the issue price.

According to InvestorGain's update on October 22, Zetwerk shares were commanding a GMP of ₹1. Against the upper end of the IPO price band of ₹151, this implies an estimated listing price of ₹152, or a premium of around 0.66%.

The grey market premium is an unofficial indicator of investor sentiment and is not regulated by stock exchanges. It does not guarantee the actual listing price and may fluctuate before the shares begin trading.

Zetwerk's IPO closed on October 19 with an overall subscription of 3.06 times. Investors bid for 56,62,54,656 shares against 18,50,66,845 shares on offer.

The Qualified Institutional Buyers (QIBs) category led demand, with its portion subscribed 4.73 times. The Non-Institutional Investors (NIIs) segment was subscribed 1.40 times, while the Retail Individual Investors (RIIs) portion received bids for 0.73 times the shares on offer.

The IPO comprised a fresh issue of shares worth ₹2,830 crore and an offer for sale (OFS) of ₹2,182 crore. The price band was fixed at ₹143-151 per share, with a face value of ₹1 per share. Each lot comprised 99 shares, translating into a minimum investment of ₹14,949 for retail investors at the upper end of the price band.

At the upper end of the price band, Zetwerk is targeting a post-issue market capitalisation of around ₹25,582 crore.

The company plans to use ₹2,160 crore from the fresh issue proceeds to repay borrowings taken by the company and certain subsidiaries. The remaining proceeds are earmarked for potential acquisitions and other inorganic growth opportunities, as well as general corporate purposes.

Zetwerk Manufacturing Business is a technology-led manufacturing platform that combines a global supplier network with owned manufacturing facilities to offer end-to-end solutions across energy, precision products and capital goods.

Its customer base includes Siemens Gamesa, Acer India, NextPower, CG Power, NTPC Renewable Energy, DRDO, NALCO, Indian Oil and the Indian Air Force, among others. The company connects nearly 7,000 third-party suppliers across 26 countries and operates 26 owned manufacturing facilities across four countries.

For FY26, Zetwerk reported revenue of ₹15,913 crore, up from ₹11,332 crore in FY25. However, its net loss widened to ₹991 crore from ₹210 crore a year earlier. EBITDA margin also narrowed to 2.1% in FY26 from 2.5% in FY25.

Key risks highlighted in the company's prospectus include extensive dependence on third-party suppliers, the absence of fixed, long-term purchase commitments with many customers, the working capital-intensive nature of the business and exposure to demand fluctuations in its end markets.

Despite these risks, SBI Securities has recommended a 'Subscribe for Long Term' rating on the IPO, citing the company's scalable platform, improving operating performance and the potential for earnings improvement following debt repayment.