{"id":307278,"date":"2026-10-14T11:30:25","date_gmt":"2026-10-14T06:00:25","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=307278"},"modified":"2026-10-14T11:30:25","modified_gmt":"2026-10-14T06:00:25","slug":"zetwerk-initial-public-offering-one-of-a-kind-manufacturing-platform-with-a-profitability-problem-price-band-valuation-financials-risks","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/zetwerk-initial-public-offering-one-of-a-kind-manufacturing-platform-with-a-profitability-problem-price-band-valuation-financials-risks\/","title":{"rendered":"Zetwerk IPO: One-of-a-Kind Manufacturing Platform With a Profitability Problem"},"content":{"rendered":"<p style=\"border-left:4px solid #1F4E79;background:#EBF3FB;padding:10px 16px;font-style:italic;\"><em>Zetwerk IPO: opens 15 Oct 2026, closes 19 Oct. Price band Rs 143 to Rs 151, lot size 99 shares. Issue size Rs 5,012.3 crore (fresh Rs 2,830 crore, offer for sale about Rs 2,182 crore). Valuation about Rs 25,583 crore at the upper band. FY26 net loss Rs 1,606.1 crore on revenue of Rs 15,913 crore. Listing expected 23 Oct.<\/em><\/p>\n<div style=\"background:#F0F9FF;border-left:4px solid #2E7D32;border-radius:6px;padding:14px 18px;margin:18px 0;\">\n<p style=\"margin:0;color:#1F4E79;font-size:14px;\"><strong>Quick Answer<\/strong><\/p>\n<p style=\"margin:8px 0 0;\">The Zetwerk IPO opens on 15 October 2026 and closes on 19 October at a price band of Rs 143 to Rs 151, raising Rs 5,012.3 crore through a Rs 2,830 crore fresh issue and an offer for sale of about Rs 2,182 crore. At the upper band the company is valued at about Rs 25,583 crore, even though it lost Rs 1,606.1 crore in FY26 on revenue of Rs 15,913.3 crore. The profitability problem is the central risk: the adjusted EBITDA margin is only about 2.6% and the June-quarter loss was Rs 732.9 crore, although it narrowed from Rs 1,368.4 crore a year earlier. Rs 2,160 crore of the fresh issue is set aside to repay debt, so investors should read it as a growth and turnaround bet and not a profitable company.<\/p>\n<\/p><\/div>\n<p>The Zetwerk IPO is one of the larger mainboard issues of the month and its listing date is set for 23 October, and the company describes itself as a B2B manufacturing platform that connects industrial buyers with a network of suppliers. It is based in Bengaluru and was incorporated in 2018.<\/p>\n<p>This guide covers the Zetwerk IPO dates, price band, valuation, financials, use of proceeds, strengths and risks. Where I calculate a figure myself, I label it.<\/p>\n<p>Revenue is growing fast, but losses are large, so the Zetwerk IPO needs a closer look than the headline size suggests.<\/p>\n<p style=\"margin-top:24px;\"><strong>Click Here &#8211; Get Free Investment Predictions<\/strong><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/zetwerk-initial-public-offering-one-of-a-kind-manufacturing-platform-with-a-profitability-problem-price-band-valuation-financials-risks\/#Zetwerk_IPO_Dates_Price_Band_and_Issue_Details\" title=\"Zetwerk IPO Dates, Price Band and Issue Details\">Zetwerk IPO Dates, Price Band and Issue Details<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/zetwerk-initial-public-offering-one-of-a-kind-manufacturing-platform-with-a-profitability-problem-price-band-valuation-financials-risks\/#Zetwerk_IPO_Financials_Growth_With_Losses\" title=\"Zetwerk IPO Financials: Growth With Losses\">Zetwerk IPO Financials: Growth With Losses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/zetwerk-initial-public-offering-one-of-a-kind-manufacturing-platform-with-a-profitability-problem-price-band-valuation-financials-risks\/#Zetwerk_IPO_Valuation_What_the_Price_Asks\" title=\"Zetwerk IPO Valuation: What the Price Asks\">Zetwerk IPO Valuation: What the Price Asks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/zetwerk-initial-public-offering-one-of-a-kind-manufacturing-platform-with-a-profitability-problem-price-band-valuation-financials-risks\/#Use_of_Proceeds_and_the_Business_Behind_the_Zetwerk_IPO\" title=\"Use of Proceeds and the Business Behind the Zetwerk IPO\">Use of Proceeds and the Business Behind the Zetwerk IPO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/zetwerk-initial-public-offering-one-of-a-kind-manufacturing-platform-with-a-profitability-problem-price-band-valuation-financials-risks\/#Zetwerk_IPO_Strengths_and_Risks\" title=\"Zetwerk IPO: Strengths and Risks\">Zetwerk IPO: Strengths and Risks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/zetwerk-initial-public-offering-one-of-a-kind-manufacturing-platform-with-a-profitability-problem-price-band-valuation-financials-risks\/#What_to_Watch_Next_for_the_Zetwerk_IPO\" title=\"What to Watch Next for the Zetwerk IPO\">What to Watch Next for the Zetwerk IPO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/zetwerk-initial-public-offering-one-of-a-kind-manufacturing-platform-with-a-profitability-problem-price-band-valuation-financials-risks\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/zetwerk-initial-public-offering-one-of-a-kind-manufacturing-platform-with-a-profitability-problem-price-band-valuation-financials-risks\/#Frequently_Asked_Questions\" title=\"Frequently Asked Questions\">Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/zetwerk-initial-public-offering-one-of-a-kind-manufacturing-platform-with-a-profitability-problem-price-band-valuation-financials-risks\/#When_does_the_Zetwerk_IPO_open_and_close\" title=\"When does the Zetwerk IPO open and close?\">When does the Zetwerk IPO open and close?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/zetwerk-initial-public-offering-one-of-a-kind-manufacturing-platform-with-a-profitability-problem-price-band-valuation-financials-risks\/#What_is_the_Zetwerk_IPO_price_band_and_lot_size\" title=\"What is the Zetwerk IPO price band and lot size?\">What is the Zetwerk IPO price band and lot size?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/univest.in\/blogs-2\/zetwerk-initial-public-offering-one-of-a-kind-manufacturing-platform-with-a-profitability-problem-price-band-valuation-financials-risks\/#How_big_is_the_Zetwerk_IPO\" title=\"How big is the Zetwerk IPO?\">How big is the Zetwerk IPO?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/univest.in\/blogs-2\/zetwerk-initial-public-offering-one-of-a-kind-manufacturing-platform-with-a-profitability-problem-price-band-valuation-financials-risks\/#Is_Zetwerk_profitable\" title=\"Is Zetwerk profitable?\">Is Zetwerk profitable?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/univest.in\/blogs-2\/zetwerk-initial-public-offering-one-of-a-kind-manufacturing-platform-with-a-profitability-problem-price-band-valuation-financials-risks\/#What_is_the_Zetwerk_IPO_valuation\" title=\"What is the Zetwerk IPO valuation?\">What is the Zetwerk IPO valuation?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/univest.in\/blogs-2\/zetwerk-initial-public-offering-one-of-a-kind-manufacturing-platform-with-a-profitability-problem-price-band-valuation-financials-risks\/#How_will_Zetwerk_use_the_money\" title=\"How will Zetwerk use the money?\">How will Zetwerk use the money?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/univest.in\/blogs-2\/zetwerk-initial-public-offering-one-of-a-kind-manufacturing-platform-with-a-profitability-problem-price-band-valuation-financials-risks\/#What_are_the_risks_of_the_Zetwerk_IPO\" title=\"What are the risks of the Zetwerk IPO?\">What are the risks of the Zetwerk IPO?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/univest.in\/blogs-2\/zetwerk-initial-public-offering-one-of-a-kind-manufacturing-platform-with-a-profitability-problem-price-band-valuation-financials-risks\/#Is_this_article_investment_advice\" title=\"Is this article investment advice?\">Is this article investment advice?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Zetwerk_IPO_Dates_Price_Band_and_Issue_Details\"><\/span><strong>Zetwerk IPO Dates, Price Band and Issue Details<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Item<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Detail<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Anchor bidding<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">14 October 2026<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Opens \/ closes<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">15 October 2026 \/ 19 October 2026<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Allotment (expected)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">21 October 2026; refunds and demat credit on 22 October<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Listing (expected)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">23 October 2026 on BSE and NSE<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Price band<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 143 to Rs 151 per share<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Lot size<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">99 shares; minimum retail bid Rs 14,949 at the upper band<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Issue size<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 5,012.3 crore: fresh issue Rs 2,830 crore and offer for sale of 14.45 crore shares (about Rs 2,182.3 crore)<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Reservation<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Up to 75% QIB, 15% non-institutional, 10% retail; employees 7 lakh shares at a Rs 14 discount<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Registrar<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">KFin Technologies<\/td>\n<\/tr>\n<\/table>\n<p>The maximum retail bid is Rs 1,94,337 at the upper band, which is 13 lots (my calculation: 1,287 shares times Rs 151). Promoter and promoter group holding is reported to fall from 15.86% to 11.36% after the issue.<\/p>\n<p>Lead managers are Kotak Mahindra Capital, Morgan Stanley India, Goldman Sachs (India) Securities, Avendus Capital, JM Financial, HSBC Securities and Capital Markets (India) and Pantomath Capital Advisors.<\/p>\n<p><strong>Risk:<\/strong> With only 10% reserved for retail, allotment in the Zetwerk IPO may be hard to get if the issue is heavily subscribed.<\/p>\n<p style=\"margin-top:24px;\"><strong>Screen new listings and manufacturing stocks on the Univest Screener<\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Zetwerk_IPO_Financials_Growth_With_Losses\"><\/span><strong>Zetwerk IPO Financials: Growth With Losses<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Item<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">FY24<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">FY25<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">FY26<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Total income (Rs crore)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">12,523.46<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">11,492.23<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">16,100.63<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Adjusted EBITDA (Rs crore)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">97.03<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">322.59<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">421.34<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Net loss (Rs crore)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">917.95<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">370.71<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">1,606.17<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Net worth (Rs crore)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">4,062.46<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">4,453.76<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">4,813.72<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Borrowings (Rs crore)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">1,232.10<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">1,746.55<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">1,936.16<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Adjusted EBITDA margin (my calculation)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 0.8%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 2.8%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 2.6%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Net margin (my calculation)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About -7.3%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About -3.2%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About -10.0%<\/td>\n<\/tr>\n<\/table>\n<p>Revenue fell in FY25 and rose about 40% in FY26. The FY26 loss is about 4.3 times the FY25 loss (my calculation), so growth came with a much bigger loss.<\/p>\n<p>For the June 2026 quarter, revenue was Rs 4,117.9 crore, up 55.4% from Rs 2,649.4 crore, and the net loss was Rs 732.9 crore against Rs 1,368.4 crore, a narrowing of about 46% (my calculation). Even so, the quarterly loss is about 17.8% of revenue (my calculation), which is higher than the FY26 ratio, so the profitability problem in the Zetwerk IPO has not been solved.<\/p>\n<p><strong>Data note:<\/strong> Sources show slightly different revenue figures (Rs 15,913 crore from operations and Rs 16,100.63 crore total income). One listing page also shows June-quarter expenses that look like full-year data, so check the draft offer documents.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Zetwerk_IPO_Valuation_What_the_Price_Asks\"><\/span><strong>Zetwerk IPO Valuation: What the Price Asks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Item<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Figure<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Note<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Market value at upper band<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About Rs 25,583 crore<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">1,69,42,54,778 shares times Rs 151 (my calculation matches the reported figure)<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Market value to FY26 total income<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 1.6 times<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">My calculation<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Market value to FY26 adjusted EBITDA<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 61 times<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">My calculation; not an enterprise value multiple<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Price to book (pre-issue net worth)<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 5.3 times<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">My calculation; lower after the fresh issue adds capital<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">P\/E<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Not meaningful<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Earnings are negative<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Return on net worth<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Minus 21.11%<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Reported<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Earnings per share<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Minus Rs 6.69<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Reported<\/td>\n<\/tr>\n<\/table>\n<p>One listing page notes that no listed peers are available for a direct comparison, which makes valuing the Zetwerk IPO harder. The price is based on growth and the hope of future margin improvement.<\/p>\n<p>A negative P\/E is not a sign of value or of overpricing. It means the Zetwerk IPO cannot be valued on profits today, so any case rests on revenue growth and the path to profit.<\/p>\n<p><strong>Risk:<\/strong> If margins do not improve, the Zetwerk IPO valuation of about 61 times adjusted EBITDA may be hard to support after listing.<\/p>\n<p style=\"margin-top:24px;\"><em>Download the Univest iOS App or Univest Android App to track the Zetwerk IPO and get allotment alerts.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Use_of_Proceeds_and_the_Business_Behind_the_Zetwerk_IPO\"><\/span><strong>Use of Proceeds and the Business Behind the Zetwerk IPO<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Item<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Detail<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Debt repayment<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Rs 2,160 crore of the fresh issue to repay borrowings of the company and certain subsidiaries<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Other uses<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Inorganic growth through acquisitions not yet identified, and general corporate purposes<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Share of fresh issue for debt<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">About 76% (my calculation: Rs 2,160 crore divided by Rs 2,830 crore)<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Footprint<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Presence in 25-plus countries, 10,000-plus suppliers and 20-plus manufacturing facilities in India, the US and Mexico, as one source reports<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Customers<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">One source says 1,100-plus; another says 1,802 in FY26 (1,613 domestic and 189 international)<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Sectors<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Electronics, renewables, aerospace and defence, capital goods and precision manufacturing<\/td>\n<\/tr>\n<\/table>\n<p>The Rs 2,160 crore debt repayment exceeds FY26 borrowings of Rs 1,936 crore, because it also covers subsidiary debt (my reading of the figures). Using most of the fresh issue to repay debt will cut interest cost but does not directly fund new growth.<\/p>\n<p>The offer for sale of about Rs 2,182 crore goes to selling shareholders, not the company. I could not find the names of the selling shareholders, so check the prospectus.<\/p>\n<p>Grey market premium (GMP) is an unofficial, unregulated indicator for the Zetwerk IPO that is not endorsed by SEBI, NSE, or BSE. Investors looking for indicative GMP data can go through other relevant sources, though such figures should never be the sole basis for an investment decision.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Zetwerk_IPO_Strengths_and_Risks\"><\/span><strong>Zetwerk IPO: Strengths and Risks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-collapse:collapse;width:100%;\">\n<tr>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Strengths<\/th>\n<th style=\"text-align:left;padding:8px;border:1px solid #DDDDDD;background:#0A0E1A;color:#FFFFFF;\">Risks<\/th>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Revenue up about 40% in FY26 and 55% in the June quarter<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Net loss of Rs 1,606.1 crore in FY26<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Wide supplier and customer network across sectors<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Thin adjusted EBITDA margin of about 2.6%<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Asset-light platform with a technology layer<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Working capital needs and collection risk<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Debt reduction planned from fresh proceeds<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Acquisitions not yet identified and integration risk<\/td>\n<\/tr>\n<tr>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Loss narrowing in the June quarter<\/td>\n<td style=\"padding:8px;border:1px solid #DDDDDD;\">Valuation of about Rs 25,583 crore with no profits and no listed peers<\/td>\n<\/tr>\n<\/table>\n<p><strong>Risk:<\/strong> A conservative investor may prefer to avoid the Zetwerk IPO, since one review rated it 2 out of 5 for such investors.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_to_Watch_Next_for_the_Zetwerk_IPO\"><\/span><strong>What to Watch Next for the Zetwerk IPO<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>Anchor investor list and size on 14 October<\/li>\n<li>Subscription by category on 15, 16 and 19 October<\/li>\n<li>Allotment on 21 October and listing on 23 October<\/li>\n<li>Quarterly loss trend and adjusted EBITDA margin after listing<\/li>\n<li>Use of the Rs 2,160 crore for debt repayment and any acquisition announcement<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Zetwerk IPO offers fast revenue growth and a large manufacturing network, but it comes with a Rs 1,606.1 crore loss, thin margins and a high valuation. Read the prospectus, decide your risk limit and do not apply only because of the size or the brand.<\/p>\n<div style=\"background:#CC0000;border-radius:8px;padding:16px 20px;margin:24px 0;\">\n<p style=\"color:#FFFFFF;font-size:13px;line-height:1.7;margin:0;\"><strong style=\"color:#FFFFFF;\">Disclaimer:<\/strong> Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).<\/p>\n<\/p><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><strong>Frequently Asked Questions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"When_does_the_Zetwerk_IPO_open_and_close\"><\/span><strong>When does the Zetwerk IPO open and close?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> It opens on 15 October 2026 and closes on 19 October 2026, with anchor bidding on 14 October.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_Zetwerk_IPO_price_band_and_lot_size\"><\/span><strong>What is the Zetwerk IPO price band and lot size?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The price band is Rs 143 to Rs 151 and the lot size is 99 shares, so the minimum retail bid is Rs 14,949 at the upper band.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_big_is_the_Zetwerk_IPO\"><\/span><strong>How big is the Zetwerk IPO?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The issue is Rs 5,012.3 crore: a fresh issue of Rs 2,830 crore and an offer for sale of about Rs 2,182.3 crore.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_Zetwerk_profitable\"><\/span><strong>Is Zetwerk profitable?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> No. It reported a net loss of Rs 1,606.1 crore in FY26 and Rs 732.9 crore in the June 2026 quarter.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_Zetwerk_IPO_valuation\"><\/span><strong>What is the Zetwerk IPO valuation?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> About Rs 25,583 crore at the upper band. P\/E is not meaningful because earnings are negative.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_will_Zetwerk_use_the_money\"><\/span><strong>How will Zetwerk use the money?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Rs 2,160 crore goes to repay debt, and the rest to acquisitions not yet identified and general corporate purposes.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_risks_of_the_Zetwerk_IPO\"><\/span><strong>What are the risks of the Zetwerk IPO?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Large losses, a thin EBITDA margin, working capital needs, acquisition risk and a high valuation with no listed peers.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_this_article_investment_advice\"><\/span><strong>Is this article investment advice?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> No. It is educational and not a recommendation.<\/p>\n<div class=\"faq-schema\"><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"When does the Zetwerk IPO open and close?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"It opens on 15 October 2026 and closes on 19 October 2026, with anchor bidding on 14 October.\"}},{\"@type\":\"Question\",\"name\":\"What is the Zetwerk IPO price band and lot size?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The price band is Rs 143 to Rs 151 and the lot size is 99 shares, so the minimum retail bid is Rs 14,949 at the upper band.\"}},{\"@type\":\"Question\",\"name\":\"How big is the Zetwerk IPO?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The issue is Rs 5,012.3 crore: a fresh issue of Rs 2,830 crore and an offer for sale of about Rs 2,182.3 crore.\"}},{\"@type\":\"Question\",\"name\":\"Is Zetwerk profitable?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"No. It reported a net loss of Rs 1,606.1 crore in FY26 and Rs 732.9 crore in the June 2026 quarter.\"}},{\"@type\":\"Question\",\"name\":\"What is the Zetwerk IPO valuation?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"About Rs 25,583 crore at the upper band. P\/E is not meaningful because earnings are negative.\"}},{\"@type\":\"Question\",\"name\":\"How will Zetwerk use the money?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Rs 2,160 crore goes to repay debt, and the rest to acquisitions not yet identified and general corporate purposes.\"}},{\"@type\":\"Question\",\"name\":\"What are the risks of the Zetwerk IPO?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Large losses, a thin EBITDA margin, working capital needs, acquisition risk and a high valuation with no listed peers.\"}},{\"@type\":\"Question\",\"name\":\"Is this article investment advice?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"No. It is educational and not a recommendation.\"}}]}<\/script><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Zetwerk IPO opens 15 Oct 2026 at Rs 143 to Rs 151. See dates, valuation, the Rs 1,606 crore FY26 loss, use of proceeds, strengths and risks.<\/p>\n","protected":false},"author":38,"featured_media":307276,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[842],"tags":[4252,5351,12003,11410],"class_list":["post-307278","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-ipo-review","tag-mainboard-ipo","tag-manufacturing-stocks","tag-zetwerk-ipo"],"metadata":{"rank_math_internal_links_processed":["1"],"_thumbnail_id":["307276"],"rank_math_title":["Zetwerk IPO Review: Price Band, Valuation, Losses and Risks"],"rank_math_description":["Zetwerk IPO opens 15 Oct 2026 at Rs 143 to Rs 151 with a Rs 5,012 crore issue. See the dates, valuation, FY26 loss of Rs 1,606 crore, use of funds and key risks."],"rank_math_focus_keyword":["Zetwerk IPO"],"rank_math_robots":["a:2:{i:0;s:7:\"noindex\";i:1;s:8:\"nofollow\";}"]},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/univest.in\/blogs-2\/wp-content\/uploads\/2026\/10\/zetwerk-ipo-one-of-a-kind-manufacturing-platform-with-a-profitability-problem.webp","_links":{"self":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/307278","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/comments?post=307278"}],"version-history":[{"count":1,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/307278\/revisions"}],"predecessor-version":[{"id":307279,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/307278\/revisions\/307279"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media\/307276"}],"wp:attachment":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media?parent=307278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/categories?post=307278"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/tags?post=307278"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}