Athira Sethu
Kochi, 24 October 2026
The shares of Zetwerk Manufacturing Business started trading on Friday for a 5% increase in price from the IPO price. The shares were listed at Rs 159 on the BSE and NSE. The IPO price had been fixed by the company at Rs 151 per share.
The total worth of the IPO was Rs 5,012.33 crore. There were two components of the IPO. One was the fresh issue of shares for Rs 2,830 crore. The other one was the Offer for Sale (OFS) of 14.45 crore shares worth around Rs 2,182 crore. The proceeds of the fresh issue will be utilized by the company whereas the OFS proceeds will be utilized by the selling shareholders.
The IPO price range had been set between Rs 143 and Rs 151 per share. The face value of each share is Rs 1.
The IPO had opened on 15th October 2026 and ended on 19th October 2026. It got 3.10 times oversubscription from the investors. This means that the applications for shares exceeded the number of shares offered in the IPO.
The applications for the retail investors’ category were 0.77 times the number of shares allotted for that category.
The QIBs’ shares were applied for 4.71 times the number of available shares. The QIB comprises large investors like financial institutions. The NIIs’ shares were applied for 1.45 times the number of available shares.
Investors could apply for a minimum of 99 shares. Investors could also apply for a higher number of shares in multiples of 99. An investor would have needed Rs 14,949 to purchase one lot of 99 shares considering the highest IPO price of Rs 151 per share.
Applicants in the employee share category received a discount of Rs 14 per share.
Before the issuance of shares through the IPO, Zetwerk raised Rs 2,251.23 crore from 99 large investors on October 14. They were termed as anchor investors. The company sold them 14,90,88,220 shares at Rs 151 per share. It included a premium of Rs 150 over face value of Rs 1. Major global investors including BlackRock, Goldman Sachs and Nomura participated in this venture.
According to the company’s financial reports, Zetwerk made a loss in the financial year 2026. Since Zetwerk made losses during that financial year, its EPS is negative and hence P/E ratio cannot be calculated.
The average RONW of the firm in the last three financial years is negative, which is 15.64%. This indicates that there is no positive return on net worth generated by the company during the period under consideration.
Several financial institutions assisted in the management of IPO of Zetwerk Limited. They are as follows: Kotak Mahindra Capital Company Ltd, Morgan Stanley India Company Ltd, Goldman Sachs India Securities Ltd, Avendus Capital Private Ltd, JM Financial Consultants Ltd, HSBC Securities & Investment Banking Pvt Ltd and Pantomath Capital Advisors Pvt Ltd. KFin Technologies was appointed for managing the share application records.
What is the purpose behind raising capital from IPO?
Mostly the IPO fund would be used for repaying some of the loans of the company and also for making any investment in other companies. Some of the money would be used for general corporate purposes.
Out of the total amount of Rs 2,160 crore expected to be raised through the IPO for the above purposes, Rs 1,300 crore is allocated for the first loan repayment or early repayment purpose and Rs 860 crore is allocated for the second loan repayment or early repayment purpose.
