# Zetwerk Manufacturing Businesses Limited: IPO analysis > Zetwerk Manufacturing Businesses Limited (CIN U74999KA2017PLC128777) has filed a Red Herring Prospectus with SEBI for an IPO comprising a fresh issue of ₹2,830 Cr and an offer for sale of 14.45 Cr shares, priced at ₹143.00 to ₹151.00 per share. In FY26 it reported revenue of ₹15,913 Cr (+40.4% on FY25) and a net loss of ₹964 Cr. Promoters hold 15.9% before the IPO. Our fact-check of its claims found 2 medium or high concerns across 90 claims checked. - Page: https://ipo.innerkore.com/company/U74999KA2017PLC128777/zetwerk-manufacturing-businesses-limited/ - CIN: U74999KA2017PLC128777 - Last updated: 13 Oct 2026 ## Key facts - **Company:** Zetwerk Manufacturing Businesses Limited - **CIN:** U74999KA2017PLC128777 - **Filing stage:** RHP - **Latest SEBI filing:** 13 Oct 2026 - **Fresh issue:** ₹2,830 Cr - **Offer for sale:** 14,45,25,036 shares - **Price band:** ₹143.00 to ₹151.00 per share - **Bidding opens:** 15 Oct 2026 - **Bidding closes:** 19 Oct 2026 - **Listing on:** BSE, NSE - **Revenue FY26:** ₹15,913 Cr - **Revenue growth:** +40.4% - **Net profit FY26:** −₹964 Cr - **Revenue CAGR FY24 to FY26:** 13.5% - **Promoter holding (pre-IPO):** 15.9% - **Lead managers:** Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, Avendus Capital Private Limited, JM Financial Limited, Pantomath Capital Advisors Private Limited - **Registrar:** KFin Technologies Limited - **Fact-check flags:** 0 high, 2 medium, 7 low ## Key signals (read from the filing; not investment advice) - **Valuation** (look closer): No P/E. Loss-making on FY26 figures. Price / sales is 1.6x at the top of the band. - **Growth** (look closer): 13.5% a year. Sales FY24 to FY26; latest year +40.4%. - **Profitability** (concern): -6.1% net margin. FY26; operating margin steady. - **Debt** (looks fine): 0.4x equity. ₹1,936 crore borrowed at the end of FY26. - **Profit into cash** (concern): Cash negative. Net loss of ₹964 crore; operations used ₹682 crore. - **One-off income** (look closer): 9 items. Management describes 9 one-off items. - **Where the money goes** (look closer): 43% for sale. 57% is new shares issued by the company. 60% of the new money repays debt. (converted using NSE's price band) - **Red flags** (look closer): 2 to review. 90 claims checked: 0 high, 2 medium concern. ## Financial snapshot (₹ crore unless stated; consolidated) | | FY24 | FY25 | 3M Jun-25 | FY26 | 3M Jun-26 | |---|---:|---:|---:|---:|---:| | Sales | 12,364 | 11,332 | 2,649 | 15,913 | 4,118 | | Sales growth | – | -8.4% | – | 40.4% | – | | Operating profit | 22 | 278 | 19 | 335 | 71 | | Operating margin | 0.2% | 2.5% | 0.7% | 2.1% | 1.7% | | Net profit | -853 | -215 | -881 | -964 | -64 | | Net margin | -6.9% | -1.9% | -33.2% | -6.1% | -1.6% | | Net worth | 4,062 | 4,454 | 3,905 | 4,814 | 4,094 | | Borrowings | 1,232 | 1,747 | 1,707 | 1,936 | 1,942 | | Return on equity | -21.0% | -4.8% | – | -20.0% | – | ## Non-recurring items (as described by management) - Exceptional items of discontinued operations amounting to ₹453.00 Crore were recognized in Fiscal 2026 due to an impairment loss related to the Civil Infrastructure Works business. (p.569) - Exceptional items (net) were nil in the three months period ended June 30, 2026 compared to ₹(8,032.33) million in the three months period ended June 30, 2025, primarily due to adjustments to the conversion ratio of various classes of shares held by shareholders of our Company. (p.574) - Restated loss for the period from discontinued operations increased by 37.11%, or ₹181.05 Crore, to ₹(6,688.54) million in the three months period ended June 30, 2026 from ₹(4,878.07) million in the three months period ended June 30, 2025, primarily due to provisions for bad and doubtful debts and unbilled revenue in the three months period ended June 30, 2026. (p.575) - Total cost of goods sold increased by 40.32%, or ₹4,017.66 Crore, in Fiscal 2026 compared to ₹9,965.15 Crore in Fiscal 2025. (p.577) - Our exceptional items (net) was ₹(8,358.39) million in Fiscal 2026 compared to ₹(835.49) million in Fiscal 2025, primarily due to fair value of increase in diluted holding to certain shareholders of ₹(7,963.98) million in Fiscal 2026 due to adjustments to the conversion ratio of various classes of shares held by shareholders of our Company. (p.578) - Our restated loss for the year from discontinued operations increased by 312.35%, or ₹486.14 Crore, in Fiscal 2026 compared to ₹(1,556.39) million in Fiscal 2025 primarily due to exceptional items of discontinued operations of ₹(4,530.00) million in respect of an impairment loss, as the realizable value of the Civil Infrastructure Works business was expected to be lower than the net asset value of the business segment. (p.579) - Exceptional items (net) was ₹(835.49) million in Fiscal 2025, primarily due to restructuring expenses in connection with the exit from the legacy business of specialized storage tanks by one of our subsidiaries. (p.580) - Restated loss for the year from discontinued operations increased by 137.92%, or ₹90.22 Crore, in Fiscal 2025 from ₹(654.18) million in Fiscal 2024 primarily due to a decrease in revenue from operations of the Civil Infrastructure Works business. (p.580) - Exceptional items are disclosed separately in the Restated Consolidated Summary Statements where it is necessary to do so to provide further understanding of financial performance. (p.597) ## Use of proceeds (fresh issue) - Repayment/prepayment, in part or full, of certain of or all of borrowings availed by: (a) our Company; and: ₹1,300 crore - Kryfs Transformers Private Limited; (vi) Unimacts Global LLC; (vii) Zetwerk Manufacturing SG Pte. Ltd.; (viii) Zap91 Solar India Private Limited; and (ix) Zet Town India Private Limited, through investments in such Subsidiaries;: ₹860 crore - Funding inorganic growth through unidentified acquisitions and other strategic acquisitions, and general corporate purposes: amount not fixed yet ## Fact-checked claims - **MEDIUM** (RegulatoryAction): Declarations confirm compliance with relevant provisions of the Companies Act, 2013 and SEBI guidelines.. The search results primarily discuss legal disputes and IPO activities related to Zetwerk Manufacturing Businesses, rather than directly confirming or denying compliance with Companies Act, 2013 and SEBI guidelines. Some results mention filings with SEBI and counterclaims, which is related to regulatory compliance but does not explicitly confirm the general declaration of compliance. - **MEDIUM** (LitigationStatus): The Company and Rays Power Infra Private Limited initiated arbitration proceedings concerning the non-payment of contractual dues for a solar photovoltaic plant, involving principal dues of approximately $19.00 million (equivalent to ₹174.08 Crore) and interest and penalty of approximately $15.00 million (equivalent to ₹137.43 Crore).. The search results indicate the existence of arbitration proceedings involving M/s Rays Power Infra Limited and other entities, including cases heard by the Telangana High Court and the National Company Law Tribunal. However, the provided snippets do not explicitly confirm the specific financial amounts mentioned in the DRHP claim ($19.00 million and $15.00 million) related to the non-payment of dues for a solar photovoltaic plant. - **LOW** (SubsidiaryPerformance): Acquired Kryfs Power Components Limited in 2025 to augment presence in the supply chain of transformer components.. The search results strongly corroborate the claim, indicating that Zetwerk acquired a majority or controlling stake in Kryfs Power Components Ltd. The search results detail the acquisition and its relevance to the industrial and energy sector, aligning with the claim. - **LOW** (SubsidiaryPerformance): The Company was originally incorporated in Chennai, Tamil Nadu as ‘Zetwerk Manufacturing Businesses Private Limited’ on December 6, 2017.. Search result [4] corroborates the claim by stating that Zetwerk Manufacturing Business Limited was originally incorporated at Chennai, Tamil Nadu as Zetwerk Manufacturing Businesses Private Limited. Other results discuss the company and its IPO details. - **LOW** (SubsidiaryPerformance): Opened an integrated facility for aerospace and defence business by acquiring Pinaka Aerospace Solutions Private Limited in 2023.. Search result [5] corroborates the claim by stating that Zetwerk announced the acquisition of a majority stake in Pinaka Aerospace Solution in a cash plus equity deal. This supports the idea that Zetwerk Manufacturing Businesses Limited acquired the company. - **LOW** (SubsidiaryPerformance): Acquired 70,83,333 equity shares of Kryfs Power Components Limited, aggregating to 80.00% of its share capital in 2025.. Several search results corroborate the general event described in the claim, indicating that Zetwerk has acquired a majority stake in Kryfs Power Components Ltd. The search results confirm the acquisition and its timing around August 2025, which aligns with the claim regarding the acquisition. - **LOW** (SubsidiaryPerformance): The Company was originally incorporated at Chennai, Tamil Nadu as ‘Zetwerk Manufacturing Businesses Private Limited’ on December 6, 2017.. One search result mentions that Zetwerk Manufacturing Businesses Pvt. Ltd. was incorporated in 2017, which is consistent with the claim regarding the year. However, other results describe the company's business focus and IPO activities, without explicitly confirming the exact incorporation location and date mentioned in the claim. - **LOW** (RegulatoryAction): The Updated Draft Red Herring Prospectus was approved for filing with SEBI and the Stock Exchanges by the Board and IPO Committee on August 12, 2026 and August 13, 2026, respectively.. The search results mention that Zetwerk filed updated IPO papers with SEBI on August 14, 2026, which is close to the date mentioned in the claim. However, the search results do not confirm the specific dates of August 12 and 13, 2026, for the Board and IPO Committee approvals. - **LOW** (LitigationStatus): The Company is involved in pending litigation concerning the recovery of dishonoured cheques issued by the Company, involving the Company and other individuals, amounting to ₹11.20 Lakh.. The search results indicate that Zetwerk has been involved in legal disputes, including a settlement with Ayr Energy and counterclaims against its case by Ayr Energy, related to lawsuits. However, the search results do not specifically confirm the exact claim regarding pending litigation for the recovery of dishonoured cheques amounting to ₹11.20 Lakh. - **NONE** (PromoterBackground): There were 36 proceedings filed by the subsidiary against the subsidiaries.. The provided search results do not contain any information regarding the specific claim that "There were 36 proceedings filed by the subsidiary against the subsidiaries." Therefore, the search results do not corroborate, contradict, or provide new information on this point. - **NONE** (PromoterBackground): There were no statutory or regulatory proceedings against the directors in the last five years.. The provided search results focus on the SEBI approval and IPO plans of Zetwerk Manufacturing Business, and do not contain information regarding any statutory or regulatory proceedings against the directors in the last five years. Therefore, the claim cannot be corroborated or contradicted by the available search results. - **NONE** (PromoterBackground): There were no tax proceedings against the directors in the last five years.. The provided search results do not contain any information regarding tax proceedings against the directors of Zetwerk Manufacturing Businesses Limited in the last five years. Therefore, the claim cannot be corroborated, contradicted, or updated by the available search snippets. ## Common questions ### How big is the Zetwerk Manufacturing Businesses Limited IPO? Zetwerk Manufacturing Businesses Limited's IPO comprises a fresh issue of ₹2,830 Cr and an offer for sale of 14.45 Cr shares, according to its Red Herring Prospectus. The price band is ₹143.00 to ₹151.00 per share. ### What are Zetwerk Manufacturing Businesses Limited's revenue and profit? Zetwerk Manufacturing Businesses Limited reported revenue from operations of ₹15,913 Cr in FY26, +40.4% versus FY25. Net loss was ₹964 Cr (FY25: loss of ₹215 Cr). Revenue grew at a compound rate of 13.5% a year from FY24 to FY26. Figures are read from the RHP, as printed there. ### How much do promoters own in Zetwerk Manufacturing Businesses Limited? Promoters hold 15.9% of Zetwerk Manufacturing Businesses Limited before the IPO. ### How will Zetwerk Manufacturing Businesses Limited use the IPO money? The fresh-issue proceeds are earmarked for: Repayment/prepayment, in part or full, of certain of or all of borrowings availed by: (a) our Company; and (₹1,300 Cr); Kryfs Transformers Private Limited; (vi) Unimacts Global LLC; (vii) Zetwerk Manufacturing SG Pte. Ltd.; (viii) Zap91 Solar India Private Limited; and (ix) Zet Town India Private Limited, through investments in such Subsidiaries; (₹860 Cr); Funding inorganic growth through unidentified acquisitions and other strategic acquisitions, and general corporate purposes (amount not fixed yet). The offer-for-sale portion goes to the selling shareholders, not the company. ### What are the red flags in Zetwerk Manufacturing Businesses Limited's RHP? We fact-checked 90 claims from the filing against the open web: 0 raised a high concern, 2 medium and 7 low. The most notable: The search results primarily discuss legal disputes and IPO activities related to Zetwerk Manufacturing Businesses, rather than directly confirming or denying… The search results indicate the existence of arbitration proceedings involving M/s Rays Power Infra Limited and other entities, including cases heard by the… This is an automated screen, not a verdict; each finding links to its sources. ### What does Zetwerk Manufacturing Businesses Limited do? Here’s what almost nobody notices about the Zetwerk IPO: despite the headlines, there’s a history of legal wrangles, including settlements with Ayr Energy, but the specific details about those lawsuits—like the exact amount of dishonoured cheques—are still murky. ### Who manages the Zetwerk Manufacturing Businesses Limited IPO? Book running lead managers: Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, Avendus Capital Private Limited, JM Financial Limited, Pantomath Capital Advisors Private Limited. Registrar to the offer: KFin Technologies Limited. Shares are proposed to list on BSE and NSE. ### Where can I read the original Zetwerk Manufacturing Businesses Limited IPO documents? All 3 filings for Zetwerk Manufacturing Businesses Limited (DAP, UDRHP, RHP) are listed on this page with links to the original PDFs on SEBI's website. Every page reference cites the exact page of the source document. ## Source documents - [Zetwerk Manufacturing Businesses Limited – RHP](https://www.sebi.gov.in/sebi_data/attachdocs/oct-2026/1791884682162.pdf) (Red Herring Prospectus, filed 13 Oct 2026) - [Zetwerk Manufacturing Businesses Limited - UDRHP](https://www.sebi.gov.in/sebi_data/commondocs/aug-2026/Zetwerk%20Manufacturing%20Businesses%20Limited%20-%20DAP_p.pdf) (Abridged prospectus (DAP), filed 14 Aug 2026) - [Zetwerk Manufacturing Businesses Limited - UDRHP](https://www.sebi.gov.in/sebi_data/attachdocs/aug-2026/1786705255144.pdf) (Updated Draft Red Herring Prospectus, filed 14 Aug 2026) --- Source: InnerKore IPO (https://ipo.innerkore.com/). Read from public SEBI filings by automated extraction; check the linked documents. Not investment advice.