Zetwerk raises Rs 2,251 Cr from anchor investors ahead of IPO

Zetwerk Manufacturing Businesses has raised Rs 2,251.23 crore from anchor investors ahead of its initial public offering. The company allotted 14.91 crore shares to 99 anchor investors at Rs 151 per share, the upper end of its IPO price band.

The anchor allocation was completed before Zetwerk’s Rs 5,012 crore IPO opens for subscription on October 15 and closes on October 19.

Global institutional investors in the anchor book included Capital Group, BlackRock, Goldman Sachs, Nomura, Société Générale, Manulife and Susquehanna. Sovereign wealth funds including Norway’s Government Pension Fund Global and Abu Dhabi Investment Authority also participated.

Domestic mutual funds such as SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Mirae Asset Mutual Fund and Aditya Birla Sun Life Mutual Fund received allocations. Insurance participants included SBI Life Insurance, ICICI Prudential Life Insurance, Bajaj Life Insurance and Axis Max Life Insurance.

Zetwerk’s IPO comprises a fresh issue of shares worth Rs 2,830 crore and an offer for sale of up to 14.45 crore shares worth Rs 2,182 crore by existing shareholders. The company has fixed the price band at Rs 143-151 per share.

At the upper end of the price band, the Bengaluru-based company is valued at around Rs 25,583 crore. Zetwerk plans to use part of the fresh issue proceeds to repay debt, while the remaining funds are earmarked for acquisitions, strategic investments and general corporate purposes.

The IPO will provide an exit opportunity for early investors through the offer for sale component. Kae Capital and Kalysta Capital are set to earn returns of up to 38X on their investments through the OFS.

Lightspeed Venture Partners is the largest selling external shareholder, offloading shares worth Rs 426.9 crore. Peak XV Partners follows with shares worth Rs 353.5 crore being sold.