Quick Take
- Zelio E-Mobility plans to raise up to Rs 167.96 crore through a preferential issue.
- The plan splits into Rs 83 crore of shares to four investors and Rs 84.96 crore of warrants to promoters.
- Promoter holding will fall from 72.76% to 70.87% after full conversion.
Electric vehicle maker Zelio E-Mobility plans to raise up to Rs 167.96 crore through a preferential issue of shares and warrants. The money will fund new plants and more dealers across India.
The BSE SME-listed company said its board has approved the plan. Shareholders will vote on it at an Extraordinary General Meeting on 20 October. The raise still needs shareholder and other approvals.
The plan has two parts. Zelio will issue up to 9.73 lakh equity shares at Rs 853 each to four non-promoter investors. That part raises up to Rs 83 crore.
Motilal Oswal Financial Services is set to get 4.70 lakh shares worth about Rs 40.09 crore. Calliope Capital Advisors LLP is set to get 3.68 lakh shares worth about Rs 31.39 crore.
Param Value Investments will get one lakh shares worth Rs 8.53 crore. Hem Growth Opportunities Fund will get 35,000 shares worth about Rs 2.99 crore.
The second part is for the promoters. Zelio will issue up to 9.96 lakh convertible warrants at Rs 853 each to Niraj Arya, Deepak Arya and Kunal Arya. That part raises up to Rs 84.96 crore.
The warrant terms are staged. At least 25% of the price is due on or before allotment. The other 75% is due when the warrants convert into shares. The warrants can convert within 18 months of allotment.
How Much Will the Promoter Stake Fall?
The promoter and promoter group’s holding will fall from 72.76% to 70.87% on a fully diluted basis. This is measured after the share allotment and full conversion of the warrants. Public shareholding will rise from 27.24% to 29.13%.
Zelio has named SEBI-registered Brickwork Ratings India as the monitoring agency for the proceeds. A monitoring agency tracks how a listed company spends the money it raises.
Where Will the Money Go?
Zelio said the raise will support its expansion across India. This includes a new electric three-wheeler plant in Patan, Haryana.
“Our next phase is about building the capacity and market reach needed to serve a much larger customer base across India,” said Kunal Arya, Managing Director of Zelio E-Mobility. He said the raise gives the company more room to grow its plants, its dealer network and the Patan facility.
Zelio already makes vehicles in Haryana, Odisha and Tamil Nadu. In July, it opened a plant in Coimbatore that can build 60,000 electric two-wheelers a year. That took its total installed capacity to 2.4 lakh units a year.
The company now has more than 400 dealers across more than 25 states. It plans to grow the network to more than 550 dealerships by the end of FY27.
Shareholders will also be asked to clear related-party deals of up to Rs 50 crore each with five firms. These are Torque Innovation EV Auto, AVR Auto Industries, Jai Bharat Engineering Tools, Jai Bharat Auto Components and Rajdhani Machinery Store. Zelio said these deals involve buying or selling goods on an arm’s-length basis.
How Did Zelio Perform in FY26?
Zelio’s numbers grew fast in FY26. Its filing shows standalone revenue from operations rose 76.28% to Rs 303.54 crore. A year earlier it was Rs 172.19 crore.
Standalone profit after tax rose 75.41% to Rs 28.03 crore. In the prior year it was Rs 15.98 crore. On a consolidated basis, revenue was Rs 310.71 crore and profit after tax was Rs 28.39 crore.
| Metric (standalone) | FY26 | FY25 | Change |
|---|---|---|---|
| Revenue from operations | Rs 303.54 Cr | Rs 172.19 Cr | Up 76.28% |
| Profit after tax | Rs 28.03 Cr | Rs 15.98 Cr | Up 75.41% |
Hisar-headquartered Zelio makes electric two-wheelers under the Zelio brand. It makes electric three-wheelers under the Tanga brand.
What this means for you: If you hold Zelio stock or track BSE SME EV names, watch the 20 October vote and the pace of the Patan plant, because the promoters are paying to raise their own risk here.
StartupFeed Insight
Read the structure, not just the headline number. Of the Rs 167.96 crore, the promoters are putting in Rs 84.96 crore of their own money through warrants, slightly more than the Rs 83 crore coming from outside investors. That is a promoter group choosing to dilute its stake from 72.76% to 70.87% to back its own growth plan. The 25% upfront and 75%-on-conversion split means the promoters have 18 months to fund the rest, so watch the conversion timeline as a signal of their confidence. The names to note are Motilal Oswal and Calliope, who together account for over Rs 71 crore of the outside money. Expect the Patan three-wheeler plant to be the first place this capital lands before FY27 ends.
— Avinash Mishra, Business Correspondent
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Disclaimer: This article is for information only and is not investment advice. StartupFeed and its authors are not SEBI-registered investment advisors. Please speak to a SEBI-registered advisor before investing.
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