Startup funding in India had a mixed listing day on October 23: Peak XV Partners and Accel India-backed Zetwerk Manufacturing Businesses listed at a 5.5% premium to its ₹151 issue price, then slid below the issue price within the first hour of trading, Reuters reported.
A tepid debut for a closely watched IPO
The shares listed at ₹159.25 on the NSE (a 5.5% premium) and ₹159 on the BSE (5.30%). But the early gains faded fast: the stock fell 6.60% from its listing price to ₹148.50 on the BSE around 10:10 am, Reuters put it at ₹147.40 by 10:23 am IST — valuing the company at about ₹251.7 billion (roughly $2.65 billion). The grey market had already warned of a muted debut, with the premium collapsing to ₹1 ahead of listing, per InvestorGain.
The ₹5,012.33-crore IPO comprised a fresh issue of ₹2,830 crore and an offer-for-sale of about ₹2,182 crore (14.45 crore shares). It was subscribed 3.06 times overall — qualified institutional buyers bid 4.73 times, non-institutional investors 1.40 times, and retail just 0.73 times. Ahead of the issue, Zetwerk raised ₹2,251 crore from anchor investors including Capital Group, BlackRock and Goldman Sachs.
Analysts flagged the gap between growth and profit: Zetwerk reported ₹4,118 crore in revenue for the April–June quarter but a net loss of ₹64.129 crore, and SMC Global Securities noted in a pre-listing note that the firm is still loss-making and relies heavily on third-party suppliers. Its clients include Siemens Gamesa, Acer India, NTPC Renewable Energy and the Indian Air Force.
Why it matters for founders
Zetwerk's debut is a reality check: even marquee venture backing cannot override questions about profitability at listing time. Founders heading to market should note that retail investors stayed away (0.73x subscription) — the path to a strong listing runs through demonstrated margins, not just order books.