Electric two- and three-wheeler maker Zelio E-Mobility is raising up $17.5 million (Rs 168 crore) through a preferential issue of equity shares and convertible warrants, according to a company announcement on Friday.
The company’s board has approved the proposed fundraise, which is subject to shareholder approval, in-principle approval from BSE and other statutory and regulatory clearances, the company said in a press statement.
The BSE SME-listed company plans to issue up to 9.73 lakh equity shares at Rs 853 apiece to four non-promoter institutional and private investors, raising about Rs 83 crore.
Motilal Oswal Financial Services is set to invest Rs 40.1 crore, while Calliope Capital Advisors LLP, owned by Navin Agarwal, will invest Rs 31.4 crore. Param Value Investments, owned and controlled by investor Mukul Agrawal, will invest Rs 8.5 crore, while Hem Growth Opportunities Fund will invest nearly Rs 3 crore.
Separately, Zelio will issue up to 9.96 lakh convertible warrants at Rs 853 each to promoters Niraj Arya, Deepak Arya and Kunal Arya, aggregating about Rs 85 crore. Investors will pay 25% of the issue price upfront, with the remaining 75% payable upon conversion within 18 months of allotment.
The proposed fundraise comes as Zelio expands its manufacturing and distribution footprint. The company currently operates three plants across Haryana, Tamil Nadu and Odisha. Its Ladwa facility in Haryana spans 263,450 sq ft, while its Coimbatore and Cuttack facilities cover around 39,000 sq ft and 30,500 sq ft, respectively.
The company is also developing a new three-wheeler manufacturing facility in Patan, Haryana, with part of the proposed capital expected to support the facility and its broader expansion across India.
“Our next phase is about building the capacity and market reach needed to serve a much larger customer base across India. The proposed fundraise will give us greater room to expand our manufacturing footprint, strengthen our distribution network and accelerate the development of our upcoming three-wheeler facility in Patan. We have built the business with a focus on profitable growth, and the priority now is to take that foundation into more markets while continuing to invest in the capabilities needed for scale,” said Kunal Arya, Managing Director, Zelio E-Mobility.
Zelio currently has more than 400 dealers across 25-plus states and is targeting over 550 dealerships by FY27 as it looks to expand its presence across the electric two- and three-wheeler segments.
