Zetwerk and Tonbo Imaging debut with contrasting IPO premiums

Zetwerk and Tonbo Imaging, two Indian startups from different sectors, made their stock market debuts this week with noticeably different results. Zetwerk, a B2B manufacturing platform, opened trading at a small premium to its IPO price, while defence tech company Tonbo Imaging saw a much larger jump on its first day.

Zetwerk’s shares began trading at ₹159.25 on the NSE and ₹159 on the BSE, according to reports. The company’s ₹5,012.3 crore IPO included a fresh issue and an offer for sale. Before the public offering, Zetwerk raised ₹2,251.2 crore from anchor investors at the upper end of its price band. The IPO was fully subscribed, though retail demand appeared lower than expected, with qualified institutional buyers showing early interest.

The funds from the fresh issue are reportedly intended for debt reduction and acquisitions. Zetwerk’s financials show a 40.4% increase in operating revenue to ₹15,913.3 crore in FY26, but its net loss also grew to ₹1,606.2 crore from ₹370.7 crore the previous year. Some early investors sold shares in the OFS, with Kae Capital and Kalysta Capital reportedly receiving high returns on their exits.

Tonbo Imaging, meanwhile, opened at ₹1,162 on the BSE and ₹1,160 on the NSE, according to reports. Its ₹852 crore IPO, which was entirely an offer for sale, saw strong demand, with subscriptions far exceeding the shares on offer. Anchor investors, including major funds, committed ₹255.4 crore before the public issue. Since the IPO was only secondary sales, Tonbo will not receive any proceeds.

The difference in how the two stocks performed at debut suggests investors may be more optimistic about certain sectors than others. Zetwerk’s widening losses and capital needs could be one reason for its more modest listing gains. Tonbo’s strong demand, on the other hand, may reflect confidence in its focus on defence tech, where margins might not depend as much on scale.

For Zetwerk, the listing is an important step in its growth, with plans to use funds for debt and acquisitions. How well it can balance expansion with profitability will likely be a key focus. Tonbo’s debut, meanwhile, shows strong investor interest in defence tech, though its long-term valuation will depend on how it performs in a competitive space.

The two debuts also point to broader patterns in India’s IPO market, where investor interest can vary widely between sectors. While some recent listings in fintech and defence tech have seen strong openings, businesses with high capital requirements may face more scrutiny over their path to profitability.

Sources: inc42.com · inc42.com