Zetwerk files UDRHP to raise Rs 2,600 Cr via fresh issue; promoters to account for 53% of OFS

Manufacturing platform Zetwerk has filed its Updated Draft Red Herring Prospectus with the Securities and Exchange Board of India (SEBI), moving a step closer to its proposed public listing. The Bengaluru-based company is looking to raise up to Rs 2,600 crore through a fresh issue, while existing shareholders will sell up to 9.68 crore shares through an offer for sale (OFS). The final value of the OFS will be decided later based on the IPO price. Interestingly, promoters and promoter group entities will account for around 53% of the total OFS. Co-founders Amrit Acharya and Srinath Ramakkrushnan will each sell up to 1.42 crore shares, while promoter group entity Creovate Innovation will offload up to 2.3 crore shares. Together, they will offer around 5.14 crore shares. Other investors, including Peak XV Partners, Accel India, Lightspeed Venture Partners and Kae Capital, are also looking to sell shares as part of the IPO. Zetwerk may also raise up to Rs 520 crore through a pre-IPO placement before filing its Red Herring Prospectus. If completed, the amount raised will be deducted from the fresh issue. The company plans to use a significant portion of the fresh issue proceeds to reduce debt. It has earmarked Rs 1,250 crore for repayment or prepayment of borrowings at the company level and another Rs 550 crore for debt at certain subsidiaries. The remaining proceeds will go towards acquisitions and general corporate purposes. Zetwerk's continuing operations generated Rs 15,913 c…