Zetwerk Manufacturing Business made its Dalal Street debut earlier today, but the shares fell over 20% from its listing price in trade on October 23, erasing its 5% listing pop. However, the stock clawed back some gains in the afternoon session.
According to analysts, the lofty valuations and persistent losses had made the company a tough bet for retail investors.
Further, an investment banker who wished to remain unnamed said that retail investors tend to focus on the grey market premium (GMP). The current GMP for Zetwerk's issue ahead of listing was zero, which indicates little interest in the issue.
Zetwerk’s lack of directly comparable listed peers also made it difficult for retail investors to assess whether its IPO valuation was justified. Without a clear benchmark to compare its financial performance, margins and valuation multiples against, investors had limited reference points to determine whether the issue was attractively priced, particularly given the company’s continuing losses.
Analysts had also flagged Zetwerk’s persistent losses and high interest costs as key concerns. Swastika Investmart noted that finance costs significantly eroded the company’s operating returns in FY26, while SMC Global Securities pointed to its dependence on third-party suppliers, industry cyclicality and competition, as well as the absence of directly comparable listed peers.