Zelio E-Mobility to Raise ₹168 Crore to Drive Pan-India Expansion

Zelio E-Mobility, a BSE SME-listed manufacturer of electric two- and three-wheelers, has received board approval to raise up to ₹167.96 crore through a preferential issue of equity shares and convertible warrants. The proposal is subject to shareholder approval, BSE’s in-principle approval and other regulatory clearances.

The issue includes up to 9.73 lakh equity shares at ₹853 per share, amounting to nearly ₹83 crore. Proposed allottees include Motilal Oswal Financial Services, Calliope Capital Advisors LLP, Param Value Investments and Hem Growth Opportunities Fund. Motilal Oswal is expected to invest about ₹40.1 crore, Calliope Capital around ₹31.4 crore, Param Value Investments nearly ₹8.5 crore and Hem Growth Opportunities Fund approximately ₹3 crore.

Zelio also plans to issue up to 9.96 lakh convertible warrants at ₹853 each to promoters Niraj Arya, Deepak Arya and Kunal Arya. The warrants will raise nearly ₹85 crore, with 25% payable upfront and the remaining 75% due upon conversion within 18 months. SEBI-registered Brickwork Ratings India has been appointed to monitor the use of the funds.

The company plans to use the capital to expand its manufacturing capacity, strengthen its distribution network and accelerate the development of its upcoming three-wheeler plant in Patan, Haryana. Zelio currently operates three facilities in Haryana, Tamil Nadu and Odisha. Its Ladwa plant spans approximately 2,63,450 square feet, while its Coimbatore and Cuttack facilities cover around 39,000 square feet and 30,500 square feet, respectively.

Managing Director Kunal Arya stated that the funds will allow the company to strengthen its distribution network and build the capacity needed to serve a much larger customer base while prioritizing profitable growth. 

Financially, Zelio has maintained profitability since its founding in 2021 and reported a 76.28% year-on-year increase in its standalone revenue from operations, reaching ₹303.54 crore in FY2025–26. Over the last four years, the company has achieved a 121% revenue CAGR. Following its October 2025 IPO, which featured an issue price of ₹136 per share and raised ₹62.83 crore in a fresh issue as part of a ₹78.34 crore total offering, Zelio’s stock has experienced substantial growth, reaching a current price of ₹1,036.20.

Zelio currently has more than 400 dealers across 25+ states and is targeting over 550 dealerships by FY27. The company aims to expand its presence in existing markets and enter new regions with its electric two- and three-wheeler portfolio.

Shareholders will consider the preferential issue at an General Meeting on October 20, 2026. They will also review related-party transactions of up to ₹50 crore each with five companies, including Torque Innovation EV, AVR Auto Industries and Rajdhani Machinery Store. Founded in 2021, Zelio E-Mobility is headquartered in Haryana and focuses on developing practical, comfortable and environmentally friendly electric vehicles.