Electric vehicle (EV) maker Zelio E-Mobility plans to raise up to Rs 167.96 crore through a preferential issue of equity shares and convertible warrants as it looks to expand its manufacturing capacity and distribution network across India.
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The BSE SME-listed company’s board has approved the proposed fundraise, which is subject to shareholder and other applicable approvals. Shareholders will consider the proposal at an Extraordinary General Meeting scheduled for 20 October.
Under the plan, Zelio proposes to issue up to 9.73 lakh equity shares at Rs 853 each to four non-promoter investors, raising up to Rs 83 crore.
Motilal Oswal Financial Services is proposed to receive 4.70 lakh shares worth about Rs 40.09 crore, while Calliope Capital Advisors LLP will receive 3.68 lakh shares worth about Rs 31.39 crore.
Param Value Investments is proposed to receive one lakh shares worth Rs 8.53 crore, while Hem Growth Opportunities Fund will receive 35,000 shares worth about Rs 2.99 crore.
The board has also approved the proposed issue of up to 9.96 lakh convertible warrants at Rs 853 each to promoters Niraj Arya, Deepak Arya and Kunal Arya, raising up to Rs 84.96 crore.
At least 25% of the warrant price will be payable on or before allotment, with the remaining 75% payable when the warrants are converted into equity shares. The warrants can be converted within 18 months of allotment.
Following the proposed share allotment and full conversion of the warrants, the promoter and promoter group’s holding will decline from 72.76% to 70.87% on a fully diluted basis. Public shareholding will increase from 27.24% to 29.13%.
Zelio has appointed SEBI-registered Brickwork Ratings India as the monitoring agency for the use of the proceeds.
Zelio said the proposed capital raise will support its expansion across India, including the development of its upcoming electric three-wheeler manufacturing facility in Patan, Haryana.
“Our next phase is about building the capacity and market reach needed to serve a much larger customer base across India. The proposed fundraise will give us greater room to expand our manufacturing footprint, strengthen our distribution network and accelerate the development of our upcoming three-wheeler facility in Patan. We have built the business with a focus on profitable growth, and the priority now is to take that foundation into more markets while continuing to invest in the capabilities needed for scale,” said Kunal Arya, Managing Director of Zelio E-Mobility.
The company has manufacturing operations across Haryana, Odisha and Tamil Nadu.
In July, Zelio opened a manufacturing facility in Coimbatore with an annual production and assembly capacity of 60,000 electric two-wheelers. The addition increased the company’s total installed manufacturing capacity to 2.4 lakh units a year.
Zelio currently has more than 400 dealers across more than 25 states and plans to expand the network to more than 550 dealerships by the end of FY27.
Shareholders will also be asked to approve related-party transactions of up to Rs 50 crore each with five entities: Torque Innovation EV Auto Private Limited, AVR Auto Industries Private Limited, Jai Bharat Engineering Tools, Jai Bharat Auto Components and Rajdhani Machinery Store.
The company said the proposed transactions will involve the purchase and/or sale of goods and will be conducted in the ordinary course of business and on an arm’s-length basis.
Hisar-headquartered Zelio manufactures electric two-wheelers under the Zelio brand and electric three-wheelers under the Tanga brand.
For FY26, the company reported standalone revenue from operations of Rs 303.54 crore, up 76.28% from Rs 172.19 crore in the previous financial year, while standalone PAT rose 75.41% to Rs 28.03 crore from Rs 15.98 crore.
On a consolidated basis, including its subsidiary Zelio Auto Components, revenue from operations stood at Rs 310.71 crore, while PAT was Rs 28.39 crore.
