Zelio E-Mobility plans to raise ₹168 crore through a preferential issue to fund its pan-India expansion and accelerate development of a three-wheeler manufacturing plant in Patan, Haryana, the electric mobility company said on Friday.
The BSE SME-listed company has received approval from its board for the proposed fundraise and will place the matter before shareholders at an Extraordinary General Meeting scheduled for October 20. The issue is intended to expand Zelio’s manufacturing footprint, strengthen its distribution network and support the development of the new Haryana facility.
Zelio proposes to issue up to 9.73 lakh equity shares at ₹853 per share to four non-promoter institutional and private investors. The share issue is expected to raise nearly ₹83 crore. The proposed allottees include Motilal Oswal Financial Services, Navin Agarwal-owned Calliope Capital Advisors LLP, Mukul Agrawal-owned and controlled Param Value Investments, and Hem Growth Opportunities Fund.
Alongside the equity issue, the 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 warrants are expected to raise nearly ₹85 crore. Zelio said 25 per cent of the issue price would be payable upfront, with the remaining 75 per cent payable when the warrants are converted within 18 months of allotment.
“Our next phase is about building the capacity and market reach needed to serve a much larger customer base across India,” Kunal Arya, managing director of Zelio E-Mobility, said in the company’s statement. He said the proposed fundraise would provide greater room to expand manufacturing, strengthen distribution and accelerate development of the upcoming three-wheeler facility in Patan.
The proposed plant adds a manufacturing dimension to Zelio’s expansion across India’s electric mobility market. The company said it currently operates three manufacturing plants, located in Haryana, Tamil Nadu and Odisha. Part of the proposed capital is expected to support the greenfield three-wheeler facility in Patan, alongside the company’s wider 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 expansion of manufacturing capacity and dealerships is aimed at increasing the company’s reach beyond its existing markets, although the company has not disclosed a commissioning date or production capacity for the Haryana plant in the supplied announcement.
The proposed issue remains subject to shareholder approval at the October 20 Extraordinary General Meeting and the completion of the stated allotment and conversion processes.
