Zelio E-Mobility, a maker of electric two- and three-wheelers, has received board approval to raise up to Rs 167.96 crore through a preferential issue of equity shares and convertible warrants, subject to shareholder and regulatory approvals. The proposed financing is primarily aimed at supporting the company’s next phase of expansion in India.
The BSE SME-listed company plans to issue up to 9.73 lakh shares at Rs 853 per share to four non-promoting institutional and private investors, totaling nearly Rs 83 crore. The transferees include Motilal Oswal Financial Services (Rs 401 million), Calliope Capital Advisors LLP owned by Mr Navin Agarwal (Rs 314 million), Param Value Investments owned by veteran investor Mr Mukul Agrawal (Rs 85 crore) and Hem Growth Opportunities Fund (nearly Rs 3 crore).
At the same time, the Board approved the issuance of up to 9.96 lakh convertible warrants to the promoters, Mr. Niraj Arya, Mr. Deepak Arya and Mr. Kunal Arya, at a price of Rs 853 each, totaling nearly Rs 85 crore, of which 25% is payable upfront and the balance 75% is payable upon conversion within 18 months. Brickwork Ratings India has been appointed to monitor the use of proceeds.
Zelio currently operates three manufacturing plants in Haryana, Tamil Nadu and Odisha and is developing a new three-wheeler plant in Patan, Haryana, which is expected to be supported by the proposed capital.
Mr. Kunal Arya, Managing Director, Zelio E-Mobility, said the next phase aims to build the capacity and market coverage required to serve a larger customer base in India, adding that the financing will help expand manufacturing, strengthen distribution and accelerate the growth of the Patan facility while continuing to invest in scale capabilities.
The capital raise follows strong financial growth, with revenue rising 76.28% year-on-year to Rs 303.54 crore in FY2025-26, representing a four-year revenue CAGR of 121%. The company, which has remained profitable since its inception and listed on BSE SME in October 2025 at Rs 136 per share, raised Rs 62.83 crore through a fresh issue as part of the total IPO of Rs 78.34 crore; its shares are currently trading at Rs 1,036.20.
Zelio currently has a network of more than 400 dealers in more than 25 states and plans to have more than 550 dealers by fiscal 2027. Shareholders will vote on the proposed preferential issue and related party transactions with Torque Innovation EV, AVR Auto Industries, Jai Bharat Engineering Tools, Jai Bharat Auto Components and Rajdhani Machinery Store worth up to Rs 50 crore each at an extraordinary general meeting scheduled to be held on October 20, 2026.