Zelio E-Mobility Board Approves ₹168 Crore Preferential Issue for Expansion

Haryana-based electric two- and three-wheeler manufacturer Zelio E-Mobility has received board approval to raise up to ₹167.96 crore through a preferential issue of equity shares and convertible warrants, subject to shareholder, BSE and other applicable regulatory approvals. The company plans to use the funds for its expansion across India, including the development of its upcoming three-wheeler manufacturing facility in Patan, Haryana.

The company proposes to issue up to 9.73 lakh equity shares at ₹853 per share to four non-promoter institutional and private investors, aggregating approximately ₹83 crore. The proposed equity allotment includes ₹40.1 crore to Motilal Oswal Financial Services, ₹31.4 crore to Calliope Capital Advisors LLP, ₹8.5 crore to Param Value Investments and approximately ₹3 crore to Hem Growth Opportunities Fund.

The board has also approved the issue of up to 9.96 lakh convertible warrants at ₹853 each to promoters Niraj Arya, Deepak Arya and Kunal Arya, aggregating approximately ₹85 crore. Under the proposed terms, 25% of the issue price will be payable upfront, with the remaining 75% payable at the time of conversion within 18 months from the date of allotment.

Zelio will seek shareholder approval for the proposed preferential issue at an Extraordinary General Meeting (EGM) scheduled for October 20, 2026. Shareholders will also consider proposed 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. The preferential issue remains subject to shareholder approval, in-principle approval from BSE Limited, and other applicable statutory and regulatory approvals.

Brickwork Ratings India, a SEBI-registered entity, has been appointed to monitor the utilisation of the proceeds.

Zelio currently operates manufacturing facilities in Haryana, Tamil Nadu and Odisha. Its Ladwa facility in Haryana spans 263,450 sq. ft., while its Coimbatore and Cuttack facilities cover approximately 39,000 sq. ft. and 30,500 sq. ft., respectively. The company is also developing a three-wheeler manufacturing plant in Patan, Haryana.

Commenting on the development, Kunal Arya, Managing Director, Zelio E-Mobility, said, “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.”

Zelio reported standalone revenue from operations of ₹303.54 crore in FY2025–26, an increase of 76.28% year-on-year. According to the company, its revenue recorded a CAGR of 121% over the last four years, and it has remained profitable since inception.

Zelio was listed on the BSE SME platform in October 2025 at an issue price of ₹136 per share. The IPO comprised a ₹62.83 crore fresh issue and a ₹15.50 crore offer for sale, taking the total issue size to approximately ₹78.34 crore.

The company currently has more than 400 dealers across over 25 states and is targeting a network of more than 550 dealerships by FY27.

Also read: EV manufacturer Zelio E-Mobility announces ₹78 crore SME IPO