Zetwerk eyes Rs 2,830 crore fresh issue, boasts Rs 12,500 crore order book | India Business News
Bengaluru: Manufacturing marketplace Zetwerk, which is preparing for an IPO, has an order book of around Rs 12,500 crore, including transformer orders worth about Rs 2,000 crore, largely for the US market. The growth is being driven by the artificial intelligence boom, which is fuelling data centre expansion and extending delivery timelines for critical power equipment, co-founder and CEO Amrit Acharya told TOI.Acharya rejected earlier reports that Zetwerk had sought a $4 billion valuation. He said the company raised about Rs 500 crore in March at a post-money valuation of Rs 27,000 crore, broadly in line with its IPO pricing.Zetwerk’s IPO comprises a fresh issue of up to Rs 2,830 crore and an offer for sale by existing shareholders. It plans to use Rs 2,160 crore of the fresh proceeds to repay debt. The issue opens on Oct 15, with the price band set at Rs 143-151.Acharya said the opportunity presented by AI-led infrastructure spending was drawing investor interest, alongside questions about whether the surge in AI spending could last.“Some people also ask the opposite question: Is this whole AI thing a bubble?” he said. However, he argued that the growing need for computing power would keep electricity infrastructure in focus.Transformer deliveries that once took months can now take years, he said, as demand has risen much faster than manufacturing capacity. “Where we are really competing is on time,” Acharya said.Rather than relying on a single factory or country, Zetwerk brings together suppliers across markets and adapts products to customers’ requirements. Acharya said its engineering capabilities were central to this approach. India and the US, for instance, operate electricity grids at different frequencies, requiring modifications to equipment designed for one market before it can be supplied to the other.The company has about 800 design engineers, he said, while roughly 14-15% of its revenue comes from in-house design-led manufacturing. Zetwerk competes with established transformer manufacturers on quality, price and delivery, he added.The company has also used suppliers in India and the Middle East to offer US customers alternatives amid changes in import tariffs. Acharya said the ability to shift sourcing across countries helped address uncertainty over costs and delivery.
Source: timesofindia.indiatimes.com