Zelio E-Mobility has approved a plan to raise up to ₹167.96 crore through a preferential issue of equity shares and convertible warrants.
The company plans to use the funds to expand its manufacturing operations, strengthen its dealer network and develop a new three-wheeler manufacturing facility in Patan, Haryana. The proposed issue will require approval from shareholders and the relevant regulatory authorities.
The electric two- and three-wheeler maker, which is listed on the BSE SME platform, will raise around ₹83 crore through the issue of up to 9.73 lakh equity shares at ₹853 each.
It also plans to raise nearly ₹85 crore through up to 9.96 lakh convertible warrants to its promoters. The fundraise comes as the company looks to increase its manufacturing capacity and expand its presence across the Indian market.
The equity issue will involve four investors — Motilal Oswal Financial Services, Calliope Capital Advisors LLP, Param Value Investments and Hem Growth Opportunities Fund. Motilal Oswal Financial Services is expected to invest ₹40.1 crore, while Calliope Capital Advisors LLP will invest ₹31.4 crore.
Param Value Investments is set to invest ₹8.5 crore, while Hem Growth Opportunities Fund will contribute nearly ₹3 crore. The company will issue the shares at ₹853 per share under the proposed preferential allotment.
Zelio will also issue convertible warrants to promoters Niraj Arya, Deepak Arya and Kunal Arya at the same price of ₹853 per warrant. Under the proposed arrangement, 25% of the warrant value will be paid upfront, with the remaining 75% payable when the warrants are converted within 18 months of allotment.
Brickwork Ratings India has been appointed to monitor how the funds raised through the issue are used. Shareholders will vote on the proposal at an Extraordinary General Meeting scheduled for October 20, 2026.
Zelio currently operates three manufacturing facilities in Haryana, Tamil Nadu and Odisha. Its largest facility, located in Ladwa, Haryana, covers 263,450 sq ft. The company also has plants covering around 39,000 sq ft in Coimbatore and 30,500 sq ft in Cuttack.
The company is developing another three-wheeler manufacturing facility in Patan, Haryana, which will focus on three-wheelers. The proposed fundraise will help finance the new facility as Zelio works to expand its production capabilities.
The company is also looking to increase its dealer network. Zelio currently has more than 400 dealers across over 25 states and plans to take the network beyond 550 dealerships by FY27.
Managing Director Kunal Arya said the company plans to use the expansion to increase production, improve distribution and reach more customers. The wider dealer network is expected to help Zelio enter new markets while strengthening its presence in existing ones.
The preferential issue is subject to shareholder approval, BSE approval and other required regulatory clearances. The company will also seek approval for proposed related-party transactions of up to ₹50 crore each with five entities, including Torque Innovation EV, AVR Auto Industries, Jai Bharat Engineering Tools, Jai Bharat Auto Components and Rajdhani Machinery Store.
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The planned investment comes as India's electric vehicle market continues to expand, with manufacturers increasing their focus on electric two-wheelers and three-wheelers. Zelio's expansion plans are aimed at supporting its growth in the electric two-wheeler and electric three-wheeler segments while building a larger presence across the country.
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