Zetwerk's $518 million India IPO fully subscribed on final day of bidding

By Reuters News

Oct 19 (Reuters) - Peak XV Partners and Accel India-backed Zetwerk Manufacturing Businesses' $518 million initial public offering was fully subscribed on last day for bids on Monday, exchange data showed, led by demand from qualified institutional buyers.


Here are some details:

  • Industrial and consumer goods manufacturer Zetwerk counts wind turbine maker Siemens Gamesa, Acer India, NTPC Renewable Energy, and the Indian Air Force among its major clients

  • The IPO received bids for 220.4 million shares, against 185.1 million shares on offer, as of 2:00 p.m. IST

  • Qualified institutional investors bid for 1.63 times, non-institutional and retail portions were subscribed 0.79 times and 0.51 times

  • The company is seeking a valuation of up to 255.83 billion rupees ($2.69 billion) at the upper end of the IPO price band of 143-151 rupees per share

  • Proceeds will be used to prepay and repay borrowings as well as fund inorganic growth opportunities

  • Last week, Zetwerk raised 22.51 billion rupees from anchor investors, including Capital Group, BlackRock and Goldman Sachs

  • The IPO comprises a fresh issue of shares worth up to 28.3 billion rupees and an offer for sale of 144.53 million shares by existing investors

  • The offer for sale includes 51.4 million shares from co-founders Amrit Acharya and Srinath Ramakkrushnan and Creovate Innovation

  • Venture investors Peak XV Partners, Lightspeed and Accel India are also trimming their holdings

  • The stock is expected to begin trading on October 23





($1 = 94.9300 Indian rupees)

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