Indian manufacturing company Zetwerk is targeting a valuation of approximately $2.64 billion as it prepares to launch a $518 million initial public offering, adding another large transaction to India’s active IPO market.
Zetwerk set a price range of 143 to 151 rupees per share for the offering.
Public subscription is scheduled to run from October 15 through October 19, with anchor investors able to submit bids beginning October 14.
Trading is expected to begin October 23.
The IPO includes a fresh issue worth approximately 28.3 billion rupees as well as shares being sold by existing investors and founders.
Zetwerk is backed by investors including Peak XV Partners and Accel India.
The company manufactures industrial and consumer products for customers across multiple sectors.
Its clients include Siemens Gamesa, Acer India, the Indian Air Force and NTPC Renewable Energy.
Energy-related products account for approximately 60% of Zetwerk’s revenue, while precision products used in areas including consumer electronics, electric vehicles and wearable devices represent roughly another 23%.
The company’s latest quarterly revenue reached approximately 41.18 billion rupees, an increase of more than 55% from a year earlier.
Zetwerk also substantially reduced its quarterly loss to approximately 641 million rupees.
The company intends to use proceeds from the offering for purposes including debt repayment and potential acquisitions.
For investors, the IPO provides another test of demand for rapidly growing Indian industrial and technology-linked businesses at a time when the country’s equity markets are absorbing several major new listings.
The next indicators will be demand from anchor investors, overall subscription levels and Zetwerk’s eventual market debut on October 23. (Reuters)
