Zetwerk IPO: Rs 5,012-Crore Issue Closes Today

Mumbai: Zetwerk Manufacturing Businesses mopped up ₹2,251.23 crore from 99 anchor investors on October 14, ahead of its ₹5,012.33 crore manufacturing IPO, with BlackRock, Goldman Sachs and Nomura among the prominent participants. The Zetwerk IPO, which opened for subscription on October 15, closes today, October 19.

Zetwerk has allocated 14,90,88,220 equity shares to anchor investors at ₹151 per share, including a share premium of ₹150 per share. According to the exchange filing, Nomura India Investment Mother Fund was allotted 3,311,253 shares worth nearly ₹50 crore. Goldman Sachs Funds' India Equity Portfolio received 2,980,098 shares worth around ₹45 crore, while its India Equity ETF was allotted 331,155 shares worth approximately ₹5 crore.

BlackRock funds also featured prominently. BlackRock Global Funds–India Fund received 1,910,304 shares worth ₹28.85 crore, while the Emerging Markets Fund was allotted 1,155,330 shares worth ₹17.45 crore. Other BlackRock funds in the allocation included its Emerging Markets Ex-China, Emerging Markets Sustainable Equity, Emerging Markets Equity Income and Emerging Markets funds. Sovereign wealth funds, Norway's Government Pension Fund Global and the Abu Dhabi Investment Authority, also participated, alongside Capital Group, Société Générale, First Sentier, Natixis, Manulife and Carmignac.

The issue

The Zetwerk IPO is a book-built issue aggregating ₹5,012.33 crore, comprising a fresh issue of 18.75 crore shares worth ₹2,830 crore and an offer for sale of 14.45 crore shares aggregating ₹2,182.33 crore. The Zetwerk IPO price band is fixed at ₹143–151 per share with a lot size of 99 shares, so retail investors need a minimum investment of ₹14,949 at the upper end.

Of the anchor allocation, 6,80,12,406 shares went to 22 domestic mutual funds, including SBI, ICICI Prudential, HDFC, Mirae, Aditya Birla Sun Life, WhiteOak, Tata, UTI and Franklin Templeton, while 1,10,10,346 shares went to seven life insurance companies including SBI Life, ICICI Prudential Life, Bajaj Life and Axis Max Life. Allotment is expected to be finalised on October 21, with listing tentatively scheduled on the NSE and BSE on October 23. The IPO India calendar has been crowded this festive season, and the Zetwerk issue stands out for its anchor participation.

Use of proceeds

Zetwerk Manufacturing proposes to use the net proceeds from the fresh issue towards repayment or prepayment of certain borrowings, ₹1,300 crore is earmarked for debt repayment, along with funding inorganic growth through acquisitions and general corporate purposes. The OFS proceeds will go to selling shareholders, including promoters, and will not be received by the company.

Incorporated in 2017, Zetwerk is a technology-led global manufacturing platform that connects industrial and consumer enterprises with a network of manufacturing partners for customised and large-scale production. It operates an asset-light model across utilities, renewable energy, consumer electronics, AI infrastructure, aerospace, space and defence, oil and gas, and industrial automation.

Anchor demand

Anchor books are the institutional vote of confidence that sets the tone for an IPO, and the Zetwerk IPO anchor response, 99 investors committing ₹2,251 crore, is among the stronger IPO India debuts this season. The presence of BlackRock, Goldman Sachs, Nomura and two sovereign wealth funds signals that global capital is comfortable with this manufacturing IPO at the ₹143–151 band.

For retail investors watching the Zetwerk IPO close today, the key dates are October 21 for allotment and October 23 for listing. The debt-repayment plan and the acquisition war chest will be the numbers to track once the company is listed.