Early investors Kae Capital and Kalysta Capital are set to realise nearly 38.3 times their acquisition cost on shares offered through Zetwerk Manufacturing Businesses’ Rs 5,012 crore initial public offering (IPO), highlighting the gains early backers can make when private companies enter public markets.
At the upper end of the IPO price band of Rs 151 per share, Kae Capital Fund II is set to receive around Rs 189.8 crore from selling 1.26 crore shares, while Kalysta Capital Fund II is expected to receive Rs 63.3 crore from selling 41.9 lakh shares. Both funds acquired the shares at a weighted average cost of Rs 3.94 apiece, according to the company’s red herring prospectus (RHP).
The return multiple reflects the sale price relative to acquisition cost, not net profit after taxes, fees or other expenses. Both investors will also retain substantial stakes in the company after the offer.
Peak XV and Lightspeed Also Sell Shares
Several other early investors are using the IPO to partially monetise their holdings.
Peak XV Partners’ two participating investment vehicles are set to receive a combined Rs 353.5 crore from their share sales. Peak XV Partners Investments V is offering around 1.76 crore shares for Rs 265.9 crore, while Peak XV Partners Growth Investments III is selling nearly 58 lakh shares for Rs 87.5 crore.
Lightspeed Venture Partners is selling shares through three investment vehicles. Based on the disclosed quantities and the Rs 151 offer price, the three sales are worth approximately Rs 426.9 crore: Rs 204.3 crore from Lightspeed Venture Partners Select IV Mauritius, Rs 175.1 crore from Lightspeed India Partners II and Rs 47.5 crore from Lightspeed India Partners III.
Accel India V is also selling around 1.2 crore shares, valued at approximately Rs 181.5 crore at the upper price band. Its weighted average acquisition cost of Rs 7.84 per share translates into a price to cost multiple of about 19.3 times for the shares being sold.
These transactions allow early investors to recover part of their investment while retaining exposure to Zetwerk’s future performance as a listed company.
Zetwerk Co-founders to Receive Nearly Rs 430 Crore
Zetwerk cofounders Amrit Pratik Acharya and Srinath Ramakkrushnan are each offering around 1.42 crore shares in the IPO. At Rs 151 per share, each sale is valued at approximately Rs 214.9 crore, taking their combined proceeds to around Rs 429.8 crore. The exact return multiple cannot be reliably calculated from the disclosed weighted average acquisition cost, which is reported as negligible.
Other selling shareholders include Rahul Sharma, Vishal Chaudhary and Ankit Fatehpuria. Meanwhile, promoter-group entity Creovate Innovation is offering shares at a price below its reported average acquisition cost of Rs 178.58 per share, compared with the IPO price of Rs 151. This illustrates how outcomes can differ across investors and investment vehicles in the same offering.
Rs 5,012 Crore IPO Attracts 3.06 Times Subscription
Zetwerk’s IPO comprises a fresh issue of Rs 2,830 crore and an offer for sale (OFS) worth approximately Rs 2,182.3 crore. The fresh issue will bring capital into the company, while the OFS proceeds go to selling shareholders.
The IPO received 3.06 times overall subscription, with institutional demand stronger than retail demand. Qualified institutional buyers subscribed 4.73 times their reserved portion, while the retail portion was subscribed 0.73 times. The shares are scheduled to list on the BSE and NSE on October 23, 2026.
Founded in 2018, Zetwerk operates a technology-led manufacturing platform connecting businesses with manufacturing capacity across industrial and consumer goods categories. Its sectors include renewable energy, electronics, aerospace, defence, oil and gas, and industrial automation.
The IPO is a milestone for the company and its early investors. For public-market investors, however, the next test will be Zetwerk’s ability to grow its manufacturing business, deploy fresh capital effectively and deliver sustainable financial performance after listing.
