Zelio E-Mobility, an electric two- and three-wheeler manufacturer, has received board approval, subject to shareholder and regulatory approvals, to raise up to ₹167.96 crore through a preferential issue of equity shares and convertible warrants. The proposed fundraise is aimed primarily at supporting the company’s next phase of expansion across India.
The BSE SME-listed company plans to issue up to 9.73 lakh equity shares at ₹853 per share to four non-promoter institutional and private investors, aggregating nearly ₹83 crore. The allottees include Motilal Oswal Financial Services (₹40.1 crore), Calliope Capital Advisors LLP, owned by Mr. Navin Agarwal (₹31.4 crore), Param Value Investments, owned by veteran investor Mr. Mukul Agrawal (₹8.5 crore), and Hem Growth Opportunities Fund (nearly ₹3 crore).
Simultaneously, the board approved the issue of up to 9.96 lakh convertible warrants at ₹853 each to promoters Mr. Niraj Arya, Mr. Deepak Arya, and Mr. Kunal Arya, aggregating nearly ₹85 crore, with 25% payable upfront and the balance 75% payable at conversion within 18 months. Brickwork Ratings India has been appointed to monitor utilisation of the proceeds.
Zelio currently operates three manufacturing plants across Haryana, Tamil Nadu, and Odisha, and is also developing a new three-wheeler plant in Patan, Haryana, which the proposed capital is expected to support.
Mr. Kunal Arya, Managing Director, Zelio E-Mobility, said the next phase is about building the capacity and market reach needed to serve a much larger customer base across India, adding that the fundraise will help expand manufacturing, strengthen distribution, and accelerate development of the Patan facility, while continuing to invest in capabilities for scale.
The fundraise follows strong financial growth, with revenue rising 76.28% year-on-year to ₹303.54 crore in FY2025-26, and a four-year revenue CAGR of 121%. The company has remained profitable since inception and was listed on the BSE SME in October 2025 at ₹136 per share, raising ₹62.83 crore through a fresh issue as part of a total IPO of ₹78.34 crore; its stock currently trades at ₹1,036.20.
Zelio currently has a network of more than 400 dealers across over 25 states and is targeting more than 550 dealerships by FY27. Shareholders will vote on the proposed preferential issue, along with related party transactions of up to ₹50 crore each with Torque Innovation EV, AVR Auto Industries, Jai Bharat Engineering Tools, Jai Bharat Auto Components, and Rajdhani Machinery Store, at an Extraordinary General Meeting scheduled for October 20, 2026.
