SHADOWFAX

Adds Zetwerk response in paragraph 4, background in paragraphs 6, 8-11 and analyst comment in paragraph 7

By Jayshree P Upadhyay, Praveen Paramasivam and Vivek Kumar M

MUMBAI/CHENNAI/BENGALURU, March 20 (Reuters) - India's Zetwerk is preparing to confidentially file draft papers for an initial public offering within the next one to two weeks, aiming to raise up to $550 million at a valuation of about $4 billion, according to two people with direct knowledge.

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 FRAL.NS and Shadowfax Technologies SADO.NS 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 GOOGL.O Google and Apple AAPL.O, 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.

(Reporting by Jayshree P Upadhyay in Mumbai, Praveen Paramasivam in Chennai and Vivek Kumar M in Bengaluru; Editing by Anil D'Silva, Dhanya Skariachan)

((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))

** Shares of logistics company Shadowfax Technologies SADO.NS up 3.8% at 123.46 rupees

** Stock listed at 112.60 rupees on NSE on Jan 28 vs issue price of 124 rupees

** Logistics solutions provider's Dec-quarter consolidated profit jumps more than five-fold year on year to 348.6 million rupees ($3.85 million)

** Rev rises ~66% y/y

** More than 5 million shares traded so far

($1 = 90.6080 Indian rupees)

(Reporting by Brijesh Patel in Bengaluru)

((Brijesh.Patel1@thomsonreuters.com; Ph no. +91 9590227221;))

** Shares of logistics company Shadowfax Technologies SADO.NS down nearly 5.5% at 103.97 rupees

** Stock down 16% from IPO issue price of 124 rupees

** Listed on Wednesday at 112.60 rupees

** More than 5.5 mln shares traded so far

** "High customer concentration, particularly its dependence on Meesho MEES.NS and Walmart-owned WMT.O Flipkart, creates elevated revenue risk as marketplaces increasingly insource logistics," says Motilal Oswal

** Non-institutional investors subscribed 84% of their portion in SADO IPO; overall issue subscribed 2.72x

** IPO raised 19.07 billion rupees, including fresh issue of shares worth 10 billion rupees to fund network infrastructure capex, lease payments, marketing, etc, as per prospectus

(Reporting by Abhirami G in Bengaluru)

((abhirami.g@thomsonreuters.com))

** Shares of Shadowfax Technologies SADO.NS shed 9.2% in their trading debut

** Stock listed at 112.60 rupees on NSE vs issue price of 124 rupees

** Logistics solutions provider's IPO consists of fresh issue of shares worth up to 10 billion rupees with existing shareholders selling 10 billion shares - prospectus

** IPO was fully subscribed last week with demand led by institutional buyers

(Reporting by Kashish Tandon in Bengaluru)

((Kashish.tandon@thomsonreuters.com))