Zetwerk eyes ₹27,000 crore IPO valuation as over 30 investors weigh anchor book
Zetwerk, a business-to-business (B2B) manufacturing platform, is preparing to tap the public markets as it seeks to capitalise on growing investor interest in India's industrial growth story.
The company is looking to launch its initial public offering (IPO) in the next few weeks at a valuation of around ₹27,000 crore ($3.1 billion), according to two people with direct knowledge of the matter. The IPO is expected to comprise a fresh issue of ₹2,830 crore and an offer for sale (OFS) of ₹2,200 crore by existing investors.
Abu Dhabi Investment Authority (ADIA), Norway's central bank, and the asset management arms of Goldman Sachs, SBI and HDFC are among more than 30 foreign and domestic investors considering participation in Zetwerk's anchor book ahead of its IPO, said the first of the two persons cited earlier, both speaking on condition of anonymity.
"There is a diversified book that includes mutual funds and key FIIs. The company is likely to be valued at around ₹27,000 crore," said the second person, adding that more investors would be added to the anchor book by Sunday night.
The company is likely to announce the IPO price band on 12 October.
Other marquee investors that have expressed interest in the anchor book include SBI Pension Fund, BlackRock, Edelweiss Asset Management and Norges Bank, Norway's central bank.
The company is expected to file its red herring prospectus (RHP) with the Securities and Exchange Board of India (Sebi) within the next two weeks. the people said.
Norges Bank and SBI Pension Fund said they had no comments, while Abu Dhabi Investment Authority declined to comment. Zetwerk did not immediately respond to Mint’s email seeking comment. Mint also reached out to SBI Mutual Fund, HDFC AMC, Edelweiss AMC, Goldman Sachs AMC, and BlackRock for comment but did not receive a responses by press time.
Founded in 2018 by Amrit Acharya, Srinath Ramakkrushnan, Vishal Chaudhary, Ankit Fatehpuria and Rahul Sharma, Zetwerk runs on its proprietary software platform, Zetwerk OS, which manages sourcing, production planning, supplier coordination and project execution. The company operates through its own facilities and a network of third-party manufacturers, supplying products to a wide range of sectors, including utilities, renewable energy, consumer electronics, artificial intelligence (AI) infrastructure, space and defence, oil and gas, industrial automation and aerospace, both in India and overseas.
Zetwerk recorded an estimated operating revenue of ₹15,900 crore in fiscal year 2026 (FY26), up 24% from fiscal year 2025 (FY25), Inc42 reported in June, citing a rating rationale from Crisil Ratings.
Zetwerk is preparing to enter the public markets at a time when investor sentiment remains subdued, particularly towards technology stocks. The Nifty IT index has fallen 24% so far in 2026, significantly underperforming the benchmark Nifty 50, which has declined 14%. The weak market sentiment could make investor demand and pricing key determinants of the success of Zetwerk's IPO, market participants said.
In an October report, Axis Direct said that “the IT Services is likely to report relatively moderate earnings growth (in Q2FY27), as global demand remains cautious.”
However, ramp-ups in large deals, outcome-based engagements and rising AI-led spending should lend some support. Margins are expected to remain mixed, with wage hikes, AI investments, deal ramp-up costs and acquisitions weighing on profitability, partly offset by rupee depreciation and productivity gains, the brokerage added.
Since its founding, Zetwerk has raised a total of $931 million across 20 funding rounds as of 27 September, according to Tracxn data, with the last round raised early this year valuing it at $4 billion. Zetwerk is backed by investors including Greenoaks Capital, Khosla Ventures, Accel, Lightspeed Venture Partners, Peak XV Partners, Avenir Growth Capital, and Baillie Gifford.
The Bengaluru-based company has appointed Kotak Mahindra Capital, JM Financial, Avendus Capital, Pantomath Capital, and the Indian arms of HSBC, Morgan Stanley and Goldman Sachs as merchant bankers for its IPO.
Recent technology listings have seen mixed fortunes. ArMee Infotech, which listed on 30 September, opened flat but ended its debut session 21% lower. Fractal Analytics listed at a nearly 3% discount to its issue price on 16 February and closed the day down about 6%. In contrast, ESDS Software Solution made a strong debut on 4 September, listing at a premium of more than 76% and ending its first trading day up 109%.
Zetwerk's clients span a range of industries, from industrial heavyweights such as L&T, NTPC and Indian Oil to consumer electronics brand boAt and global companies such as Siemens, Acer and Schneider Electric. Other clients include National Aluminium Company Ltd (Nalco), CG Power Solutions, Nordex, Bharat Bijlee and Mortenson.