B2B manufacturing company Zetwerk made its stock market debut at a 5.46% premium on the NSE at ₹159.25 against its issue price of ₹151. On the BSE, the shares listed at ₹159, up 5.3% from the issue price. 

The listing followed Zetwerk’s ₹5,012.3 Cr IPO, which opened for subscription on October 15 and closed on October 19. The company had set a price band of ₹143-₹151 per share.

Ahead of the public issue, Zetwerk raised ₹2,251.2 Cr from anchor investors by allotting 14.91 Cr equity shares at ₹151 apiece on October 14.

The IPO comprised a fresh issue of ₹2,830 Cr and an offer for sale (OFS) of 14.45 Cr shares worth ₹2,182.3 Cr. At the issue price, Zetwerk’s post-issue valuation stood at around ₹25,583 Cr.

Zetwerk increased the fresh issue from the ₹2,600 Cr proposed in its updated draft red herring prospectus (UDRHP). The OFS component also rose 49.2% from around 9.7 Cr shares.

Promoters and cofounders Amrit Pratik Acharya and Srinath Ramakkrushnan each offered to sell up to 1.42 Cr shares. Other selling shareholders included promoter group entity Creovate Innovation and funds associated with Peak XV Partners, Accel India, Lightspeed Venture Partners, and Kae Capital.

Kae Capital Fund II and Kalysta Capital Fund II bagged 38.3X returns on shares sold through the OFS, pocketing ₹196.3 Cr and ₹63.3 Cr, respectively. Lightspeed’s funds collectively received around ₹440 Cr, while Peak XV’s funds realised ₹359.3 Cr from their share sales. 

Zetwerk has earmarked ₹2,160 Cr from the fresh issue to repay or prepay borrowings of the company and certain subsidiaries, with the remaining proceeds allocated to acquisitions and general corporate purposes.

Source link