{Funding Alert} Zelio E-Mobility Plans Rs 167.96 Cr Fundraise to Expand EV Manufacturing
Electric vehicle manufacturer Zelio E-Mobility has announced plans to raise up to Rs 167.96 crore through a preferential issue of equity shares and convertible warrants as it looks to strengthen its manufacturing capabilities and expand its distribution footprint across India.
The proposal has been approved by the board of the BSE SME-listed company and remains subject to shareholder and regulatory approvals. The matter will be placed before shareholders at an Extraordinary General Meeting scheduled for October 20.
As part of the fundraising exercise, Zelio plans to issue up to 9.73 lakh equity shares at Rs 853 per share to four non-promoter investors, aiming to raise approximately Rs 83 crore.
Under the proposed allotment, Motilal Oswal Financial Services will receive 4.70 lakh equity shares valued at around Rs 40.09 crore, while Calliope Capital Advisors LLP is set to receive 3.68 lakh shares worth nearly Rs 31.39 crore. Param Value Investments will be allotted one lakh shares amounting to Rs 8.53 crore, and Hem Growth Opportunities Fund will receive 35,000 shares valued at approximately Rs 2.99 crore.
In addition, the board has cleared the issuance of up to 9.96 lakh convertible warrants priced at Rs 853 each to promoters Niraj Arya, Deepak Arya, and Kunal Arya. The warrant issue is expected to generate up to Rs 84.96 crore.
According to the company, at least 25 percent of the warrant subscription amount will be paid at or before allotment, with the balance payable upon conversion into equity shares. The warrants can be converted within 18 months from the date of allotment.
Following the proposed share issuance and complete conversion of the warrants, promoter and promoter group shareholding is expected to reduce from 72.76 percent to 70.87 percent on a fully diluted basis. Public shareholding is projected to increase from 27.24 percent to 29.13 percent.
Zelio has appointed SEBI-registered Brickwork Ratings India as the monitoring agency to oversee the utilization of the proceeds raised through the issue.
The company stated that the capital infusion will support its nationwide expansion strategy, 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 EV maker currently operates manufacturing facilities in Haryana, Odisha, and Tamil Nadu. Earlier this year, the company inaugurated a new production facility in Coimbatore with an annual manufacturing and assembly capacity of 60,000 electric two-wheelers. With the addition of the new plant, Zelio’s total installed production capacity has reached 2.4 lakh units annually.
The company currently works with over 400 dealers across more than 25 states and aims to expand its dealership network to over 550 outlets by the end of FY27.
Alongside the fundraising proposal, shareholders will also vote on related-party transactions worth up to Rs 50 crore each with Torque Innovation EV Auto Private Limited, AVR Auto Industries Private Limited, Jai Bharat Engineering Tools, Jai Bharat Auto Components, and Rajdhani Machinery Store. Zelio stated that these transactions, involving the purchase and sale of goods, will be undertaken in the ordinary course of business and on an arm’s-length basis.
Headquartered in Hisar, Haryana, 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, reflecting a 76.28 percent increase from Rs 172.19 crore in the previous financial year. Standalone profit after tax rose 75.41 percent to Rs 28.03 crore from Rs 15.98 crore a year earlier.
