India's contract manufacturing startup 'Zetwerk' receives regulator's approval for IPO

Zetwerk has received approval from the Securities and Exchange Board of India (SEBI) to go ahead with its initial public offering (IPO). The approval comes after the company confidentially filed its draft IPO papers with the market regulator earlier this year. Zetwerk can now move ahead with the remaining IPO process, subject to market conditions, following SEBI's issuance of its observation letter. The IPO will include a fresh issue of equity shares and an Offer for Sale by existing shareholders. The fresh issue will help the company raise new capital for expansion and business growth, while the Offer for Sale will allow some early investors and shareholders to sell part of their stake. Although the company has not announced the final size of the issue, earlier reports suggested that Zetwerk could raise around $550 million at a valuation of around $4 billion. The final issue size, share price and valuation will be decided through the book-building process before the IPO opens. Founded in 2018, Zetwerk has become one of India's largest technology-driven contract manufacturing companies. It uses a technology platform to connect businesses with a large network of manufacturing partners and manages the entire production process. The company serves more than 1,100 customers across 19 countries and works with over 5,400 suppliers spread across 25 countries. It also has 20+ owned manufacturing facilities across India, the United States, Mexico and Europe. Its customer base includes 98 of India's Fortune 500 companies, while its business spans sectors like electronics, energy, capital goods, industrial machinery, aerospace and defence, precision manufacturing, renewables and consumer products. Zetwerk's operating revenue is estimated to have increased to around ₹15,900 crore in FY26, up from ₹12,800 crore in FY25.