India’s electric mobility market is witnessing another major expansion push as manufacturers invest in production capacity and nationwide distribution. Zelio E-Mobility plans to raise up to ₹167.96 crore through a preferential issue of equity shares and convertible warrants to strengthen its EV manufacturing footprint and dealer network.
The BSE SME-listed company is also accelerating work on a new electric three-wheeler manufacturing facility in Patan, Haryana. The proposed fundraise comes after strong financial growth in FY26, when Zelio reported a 76.28% year-on-year rise in standalone revenue, highlighting its focus on scaling operations while maintaining profitability.
Zelio E-Mobility plans to raise up to ₹167.96 crore through equity shares and convertible warrants. The funds will support its nationwide dealer expansion and upcoming electric three-wheeler manufacturing facility in Patan, Haryana.
Zelio E-Mobility to Raise ₹167.96 Crore
Zelio E-Mobility’s board has approved a proposal to raise ₹167.96 crore, or approximately ₹168 crore, through a preferential issue of equity shares and convertible warrants.
The proposed fundraise remains subject to shareholder and other applicable approvals. The company has scheduled an Extraordinary General Meeting (EGM) for October 20, 2026, where shareholders will consider the preferential issue.
The issue price for both equity shares and warrants has been fixed at ₹853 per share/warrant.
The proposed fundraising comprises:
- ₹83 crore through the issue of up to 9.73 lakh equity shares.
- ₹84.96 crore through the issue of up to 9.96 lakh convertible warrants.
- Equity shares will be issued to four non-promoter institutional/private investors.
- Convertible warrants will be issued to company promoters.
- The proceeds will support manufacturing expansion and a larger nationwide dealer network.
Equity Issue Attracts Institutional Investors
Under the proposed preferential issue, Zelio will issue up to 9.73 lakh equity shares at ₹853 each to four non-promoter investors.
The proposed allocation includes:
- Motilal Oswal Financial Services: 4.70 lakh shares worth approximately ₹40.09 crore
- Calliope Capital Advisors LLP: 3.68 lakh shares worth approximately ₹31.39 crore
- Param Value Investments: 1 lakh shares worth ₹8.53 crore
- Hem Growth Opportunities Fund: 35,000 shares worth approximately ₹2.99 crore
Together, these investors are expected to contribute up to approximately ₹83 crore.
Promoters to Receive ₹84.96 Crore in Convertible Warrants
The company has also approved the issue of up to 9.96 lakh convertible warrants at ₹853 each to promoters Niraj Arya, Deepak Arya, and Kunal Arya.
Under the proposed structure, at least 25% of the warrant price will be payable on or before allotment. The remaining 75% will be payable when the warrants are converted into equity shares.
The warrants can be converted within 18 months from the date of allotment.
Following the proposed share allotment and full conversion of the warrants, the promoter and promoter group holding is expected to decrease from 72.76% to 70.87% on a fully diluted basis. Meanwhile, public shareholding is expected to rise from 27.24% to 29.13%.
Zelio has appointed Brickwork Ratings India, a SEBI-registered monitoring agency, to oversee the utilization of the fundraise proceeds.
New Electric Three-Wheeler Plant in Haryana
A significant portion of the proposed capital will support Zelio’s upcoming greenfield electric three-wheeler manufacturing facility in Patan, Haryana.
The investment is expected to help the company increase manufacturing capabilities as demand for electric three-wheelers continues to expand across India’s urban and commercial mobility segments.
Zelio E-Mobility plans to use the capital raise to strengthen its manufacturing footprint while accelerating the development of the Patan facility.
The company currently operates manufacturing facilities across Haryana, Odisha, and Tamil Nadu.
Zelio manufactures electric two-wheelers under the Zelio brand and electric three-wheelers under the Tanga brand.
Dealer Network to Cross 550 Outlets by FY27
Alongside manufacturing expansion, Zelio is targeting a substantial increase in its retail and distribution footprint.
The company currently has more than 400 dealers across over 25 states in India. It plans to increase this network to more than 550 dealerships by the end of FY27.
The expansion is intended to improve the company’s market reach, customer access, and after-sales presence across more Indian markets.
Key Expansion Highlights
- Current dealer network: 400+ dealerships
- Current geographical reach: 25+ states
- FY27 target: 550+ dealerships
- Upcoming facility: Electric three-wheeler plant
- Plant location: Patan, Haryana
- Existing manufacturing footprint: Haryana, Odisha, and Tamil Nadu
Coimbatore Plant Takes Installed Capacity to 2.4 Lakh Units
Zelio has also been expanding its production infrastructure.
In July, the company opened a manufacturing facility in Coimbatore, Tamil Nadu, with an annual production and assembly capacity of 60,000 electric two-wheelers.
The addition increased Zelio’s total installed manufacturing capacity to 2.4 lakh units annually.
The new three-wheeler facility in Patan is expected to further strengthen the company’s production capabilities and support its plans to expand across India’s electric mobility market.
Zelio Reports Strong FY26 Financial Growth
The proposed capital raise follows a strong financial performance in FY26.
Zelio reported standalone revenue from operations of ₹303.54 crore, representing a 76.28% year-on-year increase from ₹172.19 crore in the previous financial year.
Standalone profit after tax (PAT) increased 75.41% to ₹28.03 crore, compared with ₹15.98 crore previously.
On a consolidated basis, including subsidiary Zelio Auto Components, the company reported:
- Revenue from operations: ₹310.71 crore
- PAT: ₹28.39 crore
The company said it has remained consistently profitable since inception.
Kunal Arya Highlights Next Phase of Expansion
Kunal Arya, Managing Director of Zelio E-Mobility, said the proposed fundraise is intended to provide additional capacity and market reach as the company targets a larger customer base across India.
He highlighted the company’s plans to expand its manufacturing footprint, strengthen distribution and accelerate development of the upcoming Patan three-wheeler facility, while continuing to focus on profitable growth.
The comments underline the company’s strategy of combining manufacturing expansion with wider market penetration.
Related-Party Transactions Also on EGM Agenda
The October 20 EGM will also consider proposed related-party transactions involving five entities.
The transactions, worth up to ₹50 crore each, involve:
- Torque Innovation EV Auto Private Limited
- AVR Auto Industries Private Limited
- Jai Bharat Engineering Tools
- Jai Bharat Auto Components
- Rajdhani Machinery Store
According to the company, the proposed transactions will involve the purchase and/or sale of goods and will be conducted in the ordinary course of business on an arm’s-length basis.
Zelio’s BSE SME Journey
Zelio E-Mobility was listed on the BSE SME Platform in October 2025 at an issue price of ₹136 per share.
The proposed ₹167.96 crore capital raise represents another major step in the company’s expansion strategy, coming as it scales electric two-wheeler and three-wheeler manufacturing and builds a larger retail network.
Zelio E-Mobility plans to combine fresh capital with its existing manufacturing infrastructure, expanding dealership coverage while developing its upcoming Patan facility.
What the ₹168 Crore EV Fundraise Means
The proposed fundraise places three areas at the centre of Zelio’s next growth phase:
- EV manufacturing expansion: Development of the new electric three-wheeler plant in Patan.
- Distribution growth: Expansion from 400+ dealers to more than 550 by FY27.
- Production scalability: Building on the company’s existing 2.4-lakh-unit annual installed capacity.
With strong FY26 revenue growth and continued profitability, the company is now looking to expand its manufacturing and distribution capabilities to reach more customers across India’s rapidly developing electric mobility market.
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