Zelio E-Mobility has received approval from its Board of Directors to raise up to ₹167.96 crore through a preferential issue of equity shares and convertible warrants. The proposal is subject to shareholder approval, in-principle approval from BSE Limited and other required statutory and regulatory approvals.
The proposed fundraise will support Zelio’s expansion across India and the development of its upcoming three-wheeler manufacturing plant in Patan, Haryana. Under the proposed issue, Zelio plans to issue up to 9.73 lakh equity shares at ₹853 per share, raising approximately ₹83 crore from four non-promoter institutional and private investors. The proposed allottees are Motilal Oswal Financial Services, Calliope Capital Advisors LLP, owned by Navin Agarwal, Param Value Investments, owned and controlled by investor Mukul Agrawal, and Hem Growth Opportunities Fund.
The company also plans to issue up to 9.96 lakh convertible warrants at ₹853 each to promoters Niraj Arya, Deepak Arya and Kunal Arya, aggregating approximately ₹85 crore. Twenty-five per cent of the issue price will be payable upfront, with the remaining 75 per cent payable at the time of conversion within 18 months from allotment.
Brickwork Ratings India, a SEBI-registered credit rating agency, has been appointed to monitor the utilisation of funds from the proposed issue. Zelio currently operates three manufacturing facilities in Haryana, Tamil Nadu and Odisha. Its Ladwa facility in Haryana covers 2,63,450 sq ft while the Coimbatore and Cuttack facilities cover approximately 39,000 sq ft and 30,500 sq ft, respectively. The company is also developing a new three-wheeler manufacturing facility in Patan, Haryana. The proposed capital will be used to support the development of the facility and expand Zelio’s manufacturing and distribution network across the country.
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 a 76.28% year-on-year increase in revenue to ₹303.54 crore in FY2025-26, while its revenue CAGR over the last four years stood at 121%. The company said 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 company raised ₹62.83 crore through a fresh issue, while the total IPO size was ₹78.34 crore, including an offer for sale of ₹15.50 crore. The company currently has more than 400 dealers across over 25 states and plans to increase its network to more than 550 dealerships by FY27.
Shareholders will consider the proposed preferential issue at an Extraordinary General Meeting on October 20, 2026. The meeting will also consider 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.
Zelio E-Mobility Ltd headquartered in Haryana and founded in 2021, manufactures electric two-wheelers and three-wheelers. The company has a network of more than 400 dealers across India and focuses on product development, research and development, manufacturing and customer service. Its electric vehicle range is designed for urban and everyday mobility applications.
