Zetwerk IPO: Anchor investors raise over Rs 2,250 cr; GMP signals 14% listing gains

The initial public offering of Zetwerk Manufacturing Businesses will open for public bidding today, October 15. The offer comprises a fresh issue of Rs 2,830 crore and an offer for sale of 14.45 crore shares.

The price band for the offer has been fixed at Rs 143 to Rs 151. The bidding window for the public offer will close on Monday, October 19.

Zetwerk’s IPO of Rs 5,012.33 crore is a book-build issue comprising a fresh component of 18.75 crore shares amounting to Rs 2,830 crore. Investors will offload 14.45 crore shares through the offer-for-sale route, aggregating to Rs 2,182.33 crore.

Kotak Mahindra Capital is handling the IPO, while KFin Technologies is its registrar. The company plans to deploy fresh proceeds towards paying off its debt and financing its growth ventures.

A retail applicant can bid for a minimum of one lot comprising 99 shares, amounting to an investment of Rs 14,949, while the maximum they can apply for is 13 lots.

Small-high net worth individuals can bid for a minimum of 14 and a maximum of 66 lots. The lower cap for Big-HNI is 67 lots, translating to an investment of Rs 10,01,583.

The grey market premium for Zetwerk’s stock stood at Rs 22 or 14.57%, translating into an estimated listing price of Rs 173. The issue price band for the Zetwerk IPO is fixed at Rs 143 to Rs 151.

However, readers must know that GMP is not an official metric to determine the listing price and fluctuates based on market mood and sentiment.

Zetwerk raised Rs 2,251.23 crore from anchor investors, allocating 14.9 crore shares to 99 anchor investors at Rs 151 per share.

The anchor allocation witnessed participation from marquee global institutional investors, including Capital Group, BlackRock, Goldman Sachs, Nomura, and Société Générale, among others.

Domestic institutions included SBI Mutual Funds, ICICI Prudential Mutual Fund, HDFC Mutual Fund, and Mirae Asset Mutual Fund, among others.

The IPO, which opened for public bidding on October 15, will close its subscription window on October 19. Its share allotment process is expected to be completed by October 21. Zetwerk is likely to list on the NSE and BSE on October 23.