Zelio E-Mobility To Raise ₹168 Cr Via Preferential Issue For Expansion, Haryana Plant Development

Motilal Oswal Financial Services-backed electric mobility firm Zelio E-Mobility on Friday said it plans to raise ₹168 crore through a preferential issue to support its pan-India expansion plan and accelerate development of the upcoming three-wheeler plant in Haryana.

Zelio said it has already received the Board's approval for the fundraise and will now take the proposal to the company's Extraordinary General Meeting scheduled for October 20.

The BSE SME listed company said it proposes to issue up to 9.73 lakh equity shares at ₹853 per share to four non-promoter institutional and private investors, aggregating nearly ₹83 crore.

The 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, it said.

Simultaneously, the board approved the issue of up to 9.96 lakh convertible warrants at ₹853 each to promoters Niraj Arya, Deepak Arya and Kunal Arya, aggregating nearly ₹85 crore.

Of this, 25% of the issue price is payable upfront, and the balance 75% is payable at the time of conversion, within 18 months from the allotment, Zelio said.

"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," said Kunal Arya, Managing Director, Zelio E-Mobility.

The company has built the business with a focus on profitable growth, Arya said, and the priority now is to take that foundation into more markets while continuing to invest in the capabilities needed for scale.

The company said it has simultaneously been expanding its manufacturing footprint, with three plants now operational across Haryana, Tamil Nadu and Odisha.

Zelio said a part of the proposed capital is expected to support its greenfield three-wheeler manufacturing, which it is developing in Patan (Haryana) alongside a broader nationwide expansion.

The company currently has a network of more than 400 dealers across 25+ states and is targeting 550+ dealerships by FY27.