Zetwerk plans to launch $750 Mn IPO: Report

Zetwerk is reportedly preparing to file for an initial public offering that may raise up to $750 million. If completed, the issue would be among the larger public market debuts by an India based manufacturing company.

According to Bloomberg, the Bengaluru based manufacturing platform has appointed Kotak Mahindra Capital, JM Financial Services, Avendus Capital along with the Indian units of HSBC, Morgan Stanley and Goldman Sachs to manage the proposed issue.

The company is expected to file its draft prospectus early next year through the confidential route. The report added that the offering will include a mix of fresh and existing shares and the fresh component is likely to be larger.

Zetwerk has seen a series of funding and debt related developments in recent months. As reported by Entrackr, two co-founders are set to infuse about Rs 600 crore into the company through a new entity. The platform also secured debt from JM Financial earlier this year as part of its ongoing capital planning.

In April, Zetwerk had indicated that it was targeting a public listing within a 12 to 24 month period.

For FY24, Zetwerk reported operating revenue of around Rs 11,450 crore, according to its filings. The company recorded a net loss of about Rs 919 crore during the same period. Its FY25 numbers are not yet available.

The company has raised more than $800 million to date from investors including Lightspeed, Greenoaks, Accel, Avenir and Khosla Ventures.

Zetwerk’s IPO plan comes as it aims to expand its global manufacturing capabilities and strengthen its position in contract manufacturing. Its competitor Infra Market recently filed confidential draft paper with SEBI for a Rs 5,000 crore IPO. OfBusiness, the largest player in the space, is also planning an IPO of up to $1 billion but has not disclosed a definitive timeline.