Zelio E-Mobility to Raise ₹168 Crore Via Preferential Issue

Electric vehicle manufacturer Zelio E-Mobility announced it will raise up to ₹167.95 crore (approximately $20 million USD) through a preferential issue of equity shares and convertible warrants. The BSE SME-listed company stated the funds will fuel its growth initiatives and expansion plans.

The company will issue up to 9.73 lakh equity shares at ₹853 per share to four non-promoter institutional and private investors, raising approximately ₹83 crore. These include Motilal Oswal Financial Services, Calliope Capital Advisors LLP, Param Value Investments, and Hem Growth Opportunities Fund. Concurrently, over 9.96 lakh convertible warrants will be issued to three promoters – Niraj Arya, Deepak Arya, and Kunal Arya – at the same price, aiming to raise an additional ₹85 crore.

Promoters will pay 25% of the warrant value upon allotment, with the remaining 75% due upon conversion into equity shares within 18 months. Following the full conversion, the promoter group's stake will see a slight dilution from 72.8% to 70.9%. The company has appointed Brickwork Ratings India to monitor the utilization of the raised funds as per regulations.

Zelio will seek shareholder approval for the issuance and related-party transactions at an Extraordinary General Meeting scheduled for October 20. The company is also proposing related-party transactions of up to ₹50 crore each with five entities, which it states are in the ordinary course of business and on an arm's-length basis.

Founded in 2021, Zelio manufactures low-speed electric scooters and operates across over 25 states with more than 300 dealers. The company recently inaugurated a plant in Coimbatore to enhance its manufacturing capacity and plans to expand its dealership network and production capabilities further. In 2025, Zelio debuted on the BSE SME platform, raising ₹78.34 crore.