India's Zetwerk Opens Subscription for IPO on October 15 with Listing on October 23
India's Zetwerk opens subscription for its IPO between October 15 and 19, with its shares listing on October 23, in a price band of $1.94 to $2.05 per share, aiming to raise around $680.6 million.
Indian industrial platform company Zetwerk has set a price band between $1.94 and $2.05 per share for its initial public offering, aiming to raise around $680.6 million, putting its valuation at the upper end of the band at around $3.47 billion, according to a report by Dealroom citing Entrackr. Conversely, the report's headline cited a smaller fundraising figure of around $518 million and a valuation of $3.1 billion.
Subscription opens to investors between October 15 and 19, with institutional investors entering a day prior, and the shares will list on the stock exchange on October 23. The offering consists of a fresh issue worth $384.3 million, higher than the $353.1 million planned in August, alongside an offer for sale of 14.45 crore shares from existing shareholders, a 49% increase from the previous plan.
Co-founders Amrit Pratik Acharya and Srinath Ramakkrushnan intend to sell 1.42 crore shares each, while Krifit Innovation, an entity belonging to the promoter group, will sell up to 2.30 crore shares. Selling investors include Lightspeed Venture with 2.51 crore shares, Peak XV with 2.34 crore shares, and Accel India V selling up to 1.2 crore shares.
Zetwerk stated that it will allocate $176.5 million from the fresh issue to repay company loans, and $116.8 million to pay off debt of nine subsidiaries, while the remainder will be directed toward acquisitions and general corporate purposes. Founded in 2017 in Bengaluru, the company's platform connects businesses with manufacturers across electronics, energy, aerospace, defense, and industrial automation sectors. Revenue from continuing operations rose to $2.16 billion in its last fiscal year, up from $1.54 billion a year earlier, while its losses narrowed to $8.69 million from $119.6 million.
What Do These Terms Mean?
Initial Public Offering (IPO): A process in which a company sells its shares to the public for the first time and gets listed on a stock exchange, becoming publicly tradable instead of remaining owned by its founders and early investors.
Price Band: The minimum and maximum price range at which shares are sold in an offering, determined based on demand prior to subscription day.
Fresh Issue: New shares issued by the company in an offering, the proceeds of which go into the company treasury, unlike existing shares sold by current shareholders where proceeds go to them.
Crore: A unit of measurement common in India equal to 10 million; for example, 14.45 crore shares equal approximately 144.5 million shares.
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