Zelio E-Mobility plans to raise ₹168 crore through a preferential issue to fund nationwide expansion and accelerate development of a new three-wheeler manufacturing plant in Patan, Haryana, the electric mobility company said on Friday. The proposal, approved by the company’s board, will be placed before shareholders at an Extraordinary General Meeting scheduled for October 20.
The BSE SME-listed company plans to issue up to 9.73 lakh equity shares at ₹853 per share to four non-promoter institutional and private investors. The equity issue is expected to raise nearly ₹83 crore, according to the company.
The proposed investors include Motilal Oswal Financial Services, Calliope Capital Advisors LLP, controlled by Navin Agarwal, Param Value Investments, owned and controlled by Mukul Agrawal, and Hem Growth Opportunities Fund. Motilal Oswal Financial Services is also an investor associated with Zelio E-Mobility.
Alongside the equity issue, Zelio’s board has approved the issue of up to 9.96 lakh convertible warrants at ₹853 each to promoters Niraj Arya, Deepak Arya and Kunal Arya. The warrant issue is expected to raise nearly ₹85 crore. Twenty-five per cent of the issue price will be payable upfront, while the remaining 75 per cent will be payable when the warrants are converted, within 18 months of allotment, the company said.
Kunal Arya, managing director of Zelio E-Mobility, said the company’s next phase would focus on building the capacity and market reach required to serve a larger customer base across India. He said the proposed fundraise would support manufacturing expansion, strengthen the distribution network and accelerate development of the upcoming three-wheeler facility in Patan.
The company said it has been expanding its manufacturing footprint and currently operates three plants across Haryana, Tamil Nadu and Odisha. A portion of the proposed capital is expected to support the greenfield three-wheeler facility in Patan, Haryana, alongside the broader expansion programme.
Zelio currently has more than 400 dealers across over 25 states and is targeting more than 550 dealerships by financial year 2027. The proposed fundraise therefore links two parts of the company’s expansion plan: increasing production capacity and extending the sales and distribution network needed to reach customers in more markets.
The proposed issue still requires shareholder approval at the October 20 Extraordinary General Meeting. Until that process is completed, the company’s stated plans remain subject to the outcome of the meeting and the subsequent implementation of the issue.
