The contract electronics manufacturer’s IPO includes about $300 million in fresh equity, with the remainder coming from an offer for sale, the sources said.
Zetwerk is targeting a listing later this year and has mandated Kotak as lead banker, alongside Morgan Stanley, Goldman Sachs, Pantomath Capital Advisors, JM Financial and HSBC, the sources said.
Zetwerk declined to comment, while the banks did not immediately respond to Reuters requests for comment.
Reuters reported in November that Zetwerk had hired banks to prepare draft IPO papers for a March filing. Last March, Zetwerk CEO and co-founder Amrit Acharya said the company was considering a listing within 24 months.
India was the world’s second-largest IPO market in 2025, LSEG data showed, but sentiment has weakened this year after a selloff in technology services stocks, with recent listings such as Fractal Analytics and Shadowfax Technologies struggling on debut.
“While the market is subdued currently, we don’t think investors wouldn’t want to bet on a good company, which comes in with the right valuations,” said Dharmesh Kant, head of equity research at Cholamandalam Securities.
Companies usually file IPO papers well before launch and can delay the sale if markets turn volatile. Holding back even on filings can signal expectations of a prolonged downturn. Once approved by regulators, firms have up to 12 months to launch their IPOs.
Founded in 2018, Zetwerk supplies industries ranging from consumer electronics to aerospace and defence, with more than 10 facilities across India, the United States, Mexico and Europe. Its client base includes Samsung, Volvo and Honeywell.
India’s contract electronics manufacturing sector has expanded rapidly in recent years as global tech giants, including Alphabet’s Google and Apple, diversify supply chains away from China.
Zetwerk last raised nearly $90 million in late 2024 in a funding round led by Khosla Ventures, IndiGo co-founder Rakesh Gangwal and Baillie Gifford, valuing it at about $3.1 billion.