Zetwerk IPO draws 23% subscription on day one; Rs 5,012 crore issue open till October 19

The initial public offering of Zetwerk Manufacturing Businesses, the venture-backed contract manufacturing start-up, was subscribed 0.23 times, or 23%, on its first day of bidding on Thursday, October 15, 2026. By 5:03 pm, institutional investors had bid for 0.30 times the shares set aside for them, retail investors 0.23 times and non-institutional investors 0.09 times. The Rs 5,012.33 crore issue, priced at Rs 143 to Rs 151 a share, stays open until Monday, October 19, and the shares are scheduled to list on October 23.

At about Rs 25,583 crore at the top of its price band, Zetwerk is a large test of how public investors value a venture-backed start-up built in manufacturing rather than consumer internet. Its business makes goods for other companies through contract manufacturing.

A slow first day does not settle the result, since the issue has two more bidding days. Still, the muted opening stands out after the company raised Rs 2,251 crore from 99 anchor investors before the issue opened, which showed strong interest from large funds. How the remaining days go will show whether that confidence carries over to the wider market.

The structure of the issue matters for anyone thinking of applying. Of the Rs 5,012 crore, Rs 2,830 crore is fresh money that will go to the company, while Rs 2,182 crore goes to existing shareholders selling part of their stake. The fresh issue was raised from Rs 2,600 crore proposed earlier, and the offer for sale was also expanded. Only 10% of the net offer is reserved for retail investors, with 75% for qualified institutional buyers and 15% for non-institutional investors, so the institutional book will largely decide the final outcome.

Short-term: Subscription figures on Friday and on the final day, Monday, October 19, will decide whether the issue is fully taken up. Retail investors can apply for a minimum of one lot of 99 shares, costing Rs 14,949 at the upper price band, until the issue closes.

Long-term: A successful listing would add to a growing line of Indian start-ups going public and could encourage other manufacturing and industrial technology companies to follow. A weak debut would make investors more cautious about valuations for venture-backed businesses that are only now building a track record in public markets.

Who is affected: Retail and institutional investors weighing whether to apply, Zetwerk's employees and early backers, the manufacturing firms in its supplier network, and other Indian start-ups planning listings.

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