IPO Debuts Split on Listing Day

CA Aaditya Jain

Oct 23

4 min read

Updated: 11 minutes ago

Cover image of the Katrela Ventures Daily Update for 23 October 2026: IPO Debuts Split on Listing Day

Katrela Ventures Daily Update · Investment, M&A and Business Innovation Digest · 23 October 2026

Key takeaways

Tonbo Imaging listed at ₹1,162 on BSE, 66% above its ₹700 issue price, after its QIB portion was subscribed 293.56 times.
Zetwerk listed at a 5.46% premium but was trading below its ₹151 issue price within hours.
Swiggy set a mid-Q3 FY27 timeline to move Instamart to an inventory-led model; Vultr plans a 20 MW AMD GPU supercluster in Chennai.
Funding: Firstwork raised $15 million and Harajuku Tokyo Café $3 million.

Stay ahead with the latest funding rounds, strategic acquisitions, and groundbreaking innovations shaping the business world!

📩 #Read the full update below.

01. TOP STORIES

Swiggy Sets Mid-Q3 FY27 Timeline for Instamart's Inventory Model: Swiggy reported Q2 FY27 revenue from operations of ₹7,571 crore, up 36.1% year-on-year, and a net loss of ₹922 crore, 15.6% narrower than a year earlier, on 22 October. In its shareholder letter, the company said it will move Instamart to an inventory-led model by mid-Q3 FY27, a shift it expects to improve Instamart's working capital cycle by 8–10 days.

Vultr Plans 20 MW AMD GPU Supercluster in Chennai: Cloud infrastructure provider Vultr announced on 21 October that it will build a 20 MW AI supercluster in Chennai powered by AMD Instinct MI355X GPUs, which it says will be India's largest AMD Instinct deployment. The company plans further capacity in 2027, including AMD's MI455X GPUs.

02. QUICK TAKES

IPO Debuts Split on Listing Day

Two manufacturing-linked companies listed on 23 October with sharply different first-day outcomes. Tonbo Imaging, which designs and manufactures defence electronics and imaging systems such as thermal imagers and weapon sights, listed at ₹1,162 on BSE, 66% above its issue price of ₹700. Zetwerk listed at ₹159.25 on NSE, a 5.46% premium to its ₹151 issue price, but was trading at ₹147.4, below the issue price, by 10:23 am IST, according to Reuters.

The demand behind the two books differed in depth. Tonbo's ₹852.18 crore issue was entirely an offer for sale, so the company receives no proceeds; qualified institutional buyers bid for 293.56 times their portion, non-institutional investors for 156.36 times and retail investors for 31.11 times. Zetwerk's ₹5,012.3 crore IPO combined a ₹2,830 crore fresh issue with an offer for sale of ₹2,182.3 crore and was subscribed 3.06 times overall, with the QIB portion at 4.73 times, according to Reuters.

Scale and profile also separate the two. Tonbo's market capitalisation at listing was ₹6,656.18 crore on BSE, and its systems are deployed across 24 countries, with more than 28,000 in the field; it raised ₹255.4 crore from 43 anchor investors at ₹700 a share. Zetwerk raised ₹2,251.2 crore from anchor investors alone before the issue opened, and Reuters reported that investor concerns centred on profitability and reliance on third-party suppliers.

The debuts come in a busy year for the primary market. LSEG data cited by Reuters shows 246 companies have raised $13.54 billion in India so far in 2026, and bidding for Jio Platforms' IPO was under way the same week. For companies preparing to list, the day shows that strong institutional demand during book-building does not by itself settle how a stock trades once it opens to the wider market.

One trading session is also a narrow measure. Tonbo's listing-day premium sits alongside weaker recent financials: its total income fell 22.02% to ₹369.94 crore in FY26, profit after tax fell 30.07% to ₹50.88 crore, and it reported a net loss of ₹17.74 crore for the quarter ended 30 June 2026. First-day prices are an early signal rather than a settled verdict on either business.

Katrela's Take

➢Today's listings separate two tests that IPO candidates often treat as one: winning institutional demand in the book, and holding value once trading opens. For founders and pre-IPO investors in manufacturing and defence technology, the mix of fresh issue and offer for sale, the profitability record and the size of the issue relative to demand all shape that second test. The opportunity is visible institutional appetite for specialised manufacturers with an export footprint; the constraint is that scale alone does not anchor post-listing pricing. QIB subscription depth, the trailing profit trend, the OFS share of the issue and the stock's position against its issue price over the first quarter will decide how these debuts are read.

For IPO-bound founders, which matters more at listing: subscription depth or profit track record?

03. FUNDING BRIEF

Firstwork-an AI-led workforce automation platform for frontline hiring and onboarding-has raised $15 million (₹142.0 crore approx.) in a Series A round led by Earlybird Venture Capital, with participation from Legion VC, Deel Ventures and existing investors Gradient and Y Combinator.

Harajuku Tokyo Café-a Japanese-themed casual dining and bakery chain-has raised $3 million (₹28.4 crore approx.) in a pre-Series A round led by ZeroW, with participation from Indian Angel Network, Samved VC, Blume Founders Fund and Brijesh Parekh Family Office.

Preparing for a listing? Katrela runs investment-readiness reviews — DM us.

Follow Aaditya Jain, Pradeep Jain and Katrela Ventures for expert insights on investment trends, M&A activities, and business strategy! 💡

Frequently asked questions

How did Tonbo Imaging and Zetwerk perform on listing day?

Tonbo Imaging listed at ₹1,162 on BSE, 66% above its ₹700 issue price. Zetwerk listed at ₹159.25 on NSE, a 5.46% premium, but was trading at ₹147.4, below its ₹151 issue price, by mid-morning.

What determines whether an IPO holds value after listing?

Katrela Ventures points to the mix of fresh issue and offer for sale, the profitability record and the size of the issue relative to demand, not institutional demand alone.

What should IPO-bound founders track?

QIB subscription depth, the trailing profit trend, the OFS share of the issue and the stock's position against its issue price over the first quarter.

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