Zelio E-Mobility, a Hisar-based electric vehicle manufacturer, approved a ₹167.95 crore fundraising plan via preferential share issuance and convertible warrants to fuel growth and scale manufacturing.
- Preferential issue to raise nearly ₹168 crore from institutional investors and promoters
- Manufacturing capacity set to increase from 1.8 lakh to 2.4 lakh units annually by Q2 FY27
- Promoter stake dilution from 72.8% to 70.9%, public shareholding to rise
What happened
Zelio E-Mobility’s board has approved raising ₹167.95 crore through a preferential issue comprising equity shares and convertible warrants. The company will issue about 9.73 lakh equity shares priced at ₹853 each to four institutional and private investors, bringing in nearly ₹83 crore. Concurrently, promoters Niraj Arya, Deepak Arya, and Kunal Arya will receive over 9.96 lakh convertible warrants, valued around ₹85 crore, which can be converted into shares within 18 months.
Why it matters
This capital raise comes at a pivotal moment for Zelio, which is aggressively expanding its manufacturing footprint and dealer network. The newly inaugurated Coimbatore plant boosts installed capacity by 60,000 units annually, helping increase total output potential from 1.8 lakh to 2.4 lakh e-two-wheelers in FY27. The company aims to grow its dealer network to 550 across 25 states by the fiscal year-end, reinforcing its presence across India’s growing EV market.
Financially, Zelio posted a 75.4% rise in standalone profit to ₹28 crore in FY26, with consolidated revenue including a new components subsidiary reaching ₹310.7 crore. The fundraise will fuel further scaling of operations and market penetration, positioning Zelio competitively alongside listed peers like Ola Electric and Ather Energy, which have recently raised substantial capital through market instruments.
What to watch next
Additionally, how effectively Zelio leverages this capital to compete in the intensifying Indian EV landscape will be telling. The company's production scaling, market adoption, and financial performance in the coming quarters will offer insights into its growth trajectory and ability to capitalize on India’s evolving EV adoption trends.