Zetwerk shares plunge nearly 18% from opening price, trade below IPO issue price

Shares of Zetwerk Manufacturing Businesses fell sharply on Friday after making a 5% premium debut on the stock exchanges. The stock opened at ₹159 against its IPO issue price of ₹151, but subsequently came under heavy selling pressure.

At the time of reporting, Zetwerk shares were trading at ₹130.62, down ₹28.38 or 17.98% from the opening price. The stock was also trading around 13.5% below its IPO issue price.

The weak debut comes despite strong subscription to Zetwerk’s ₹5,012-crore initial public offering. The issue received bids for 56,62,60,695 shares against 18,50,66,845 shares on offer, according to NSE data.

Revenue grows sharply, but losses remain a concern

Zetwerk’s revenue from operations rose 40.4% to ₹15,913.3 crore in FY26 from ₹11,331.9 crore in FY25. However, the company’s net loss widened sharply to ₹1,606.2 crore in FY26 from ₹370.7 crore a year earlier.

The company’s performance improved on a quarterly basis in the first quarter of FY27. Revenue rose 55.4% year-on-year to ₹4,117.9 crore, compared with ₹2,649.4 crore in Q1 FY26.

Its total net loss narrowed to ₹733 crore in Q1 FY27 from ₹1,368.5 crore in the year-ago quarter. Loss from continuing operations stood at ₹64.1 crore, compared with ₹880.7 crore in Q1 FY26. Adjusted EBITDA also increased to ₹103.2 crore from ₹31.1 crore during the same period. 

Zetwerk’s IPO was subscribed 3.06 times overall. The portion reserved for qualified institutional buyers was subscribed 4.73 times, while the non-institutional investor category received 1.40 times subscription. The retail portion was subscribed 73%.

Ahead of the IPO, Zetwerk raised ₹2,251.23 crore from anchor investors including BlackRock, Goldman Sachs and Nomura. The company allotted 14.91 crore equity shares to 99 funds at ₹151 apiece, the upper end of its price band.

The anchor book also saw participation from Capital Group, First Sentier Investors, Norway’s Government Pension Fund Global and Abu Dhabi Investment Authority. Capital World, Capital Research and 3P India, the fund of former HDFC Mutual Fund CIO Prashant Jain, also participated.

Zetwerk had fixed the IPO price band at ₹143-151 per share. The issue comprised a fresh issue worth ₹2,830 crore and an offer-for-sale of 14.45 crore equity shares by existing shareholders. At the upper end of the price band, the OFS was valued at around ₹2,182 crore.

The company plans to use the fresh issue proceeds primarily to repay debt at the company and subsidiary level, besides funding unidentified acquisitions and general corporate purposes.

Founded in 2018, Zetwerk operates a technology-led manufacturing platform and owns 26 manufacturing facilities across India, the US, Germany and Spain. It also works with third-party suppliers across multiple countries.

Its customers include Siemens Gamesa, Acer India, CG Power, NTPC Renewable Energy, L&T MHI Power Boiler, DRDO, the Indian Air Force and Numaligarh Refinery. The company operates two key businesses: Manufacturing Business and Ecosystem Business, branded Terra91. It discontinued its civil infrastructure business in FY26 as part of a strategic realignment.