Zetwerk, a B2B manufacturing company, filed its updated IPO papers with SEBI to raise ₹2,600 crore through a fresh share offer and an offer-for-sale (OFS) of up to 9.6 crore equity shares. The IPO includes stake sales by 18 investors and three individual shareholders, including promoters Amrit Acharya and Srinath Ramakkrushnan, who plan to offload up to 1.4 crore shares each, according to inc42.com.
The promoter entity Creovate Innovations intends to sell up to 2.3 crore shares, with all promoter entities holding around 18% of Zetwerk. Major investors such as Peak XV Partners, Accel, Lightspeed Ventures, and Kae Capital are also selling portions of their stakes. Greenoaks, Zetwerk's largest backer with nearly 20% stake, will not be selling any shares. The fresh issue proceeds will be largely used to repay or prepay debts, with ₹1,800 crore, or nearly 70%, allocated for this purpose.
Zetwerk has raised over $900 million through private equity sales so far, with its latest funding round closing last month at $5 million. The company plans to use the remaining IPO proceeds for acquisitions and general corporate purposes. The IPO marks a significant step for Zetwerk as it seeks to expand its footprint in the manufacturing sector amid growing investor interest in industrial tech startups.
The IPO filing details that the offer-for-sale will include shares from multiple investors, with Accel selling 72 lakh shares from its 7.7% stake and Lightspeed Ventures offloading 78 lakh shares from its 9.9% stake. The next regulatory milestone is SEBI's review and approval of the IPO documents, which will determine the timeline for Zetwerk's public listing, inc42.com reported.