Early investors in Zetwerk Manufacturing Business are set to make multi-fold returns on the shares they are selling through the company’s initial public offering (IPO), with Kae Capital and Kalysta Capital leading the gains at around 38.3 times their acquisition cost.
At the upper end of Zetwerk’s IPO price band of Rs 143–151 per share, Kae Capital Fund II and Kalysta Capital Fund II stand to earn gross returns of around 38.3 times the cost of the shares being offered for sale, according to calculations based on the company’s red herring prospectus (RHP).
Accel India V (Mauritius) is set to make around 19.3 times its acquisition cost on the shares it is selling, while Peak XV Partners and Lightspeed Venture Partners are poised for returns of around 9.3 times and 4.2 times, respectively, when their participating funds are considered together.
These calculations consider only the shares being offered for sale in the IPO, rather than the investors' entire holdings in Zetwerk. The estimated returns are based on an assumed offer price of Rs 151 per share and do not account for taxes or transaction costs.
Kae Capital Fund II will offer up to 1.26 crore shares in the IPO. With a weighted-average acquisition cost of Rs 3.94 per share, the shares would generate gross proceeds of around Rs 189.8 crore at Rs 151 apiece. The estimated gain on these shares works out to approximately Rs 184.9 crore, representing a return multiple of 38.3 times the acquisition cost.