Zelio E-Mobility's board has approved a plan to raise up to ₹167.96 crore through a preferential issue of equity shares and convertible warrants, with the bulk of the money earmarked for a new three-wheeler manufacturing facility in Patan, Haryana. The raise remains a proposal for now: it hinges on shareholder approval, in-principle clearance from BSE Limited and other statutory and regulatory sign-offs.

The Haryana-based maker of electric two- and three-wheelers has split the raise into two tranches. The first covers up to 9.73 lakh equity shares at ₹853 per share, sold to four non-promoter institutional and private investors for roughly ₹83 crore. Motilal Oswal Financial Services takes the largest slice at ₹40.1 crore, followed by Calliope Capital Advisors LLP at ₹31.4 crore, Param Value Investments at ₹8.5 crore and Hem Growth Opportunities Fund at approximately ₹3 crore.

The second tranche is a promoter subscription. The board has approved the issue of up to 9.96 lakh convertible warrants at ₹853 each to Niraj Arya, Deepak Arya and Kunal Arya, worth about ₹85 crore. The terms require 25% of the issue price upfront, with the remaining 75% payable on conversion within 18 months of allotment.

Shareholders will vote on the plan at an Extraordinary General Meeting scheduled for October 20, 2026. The same meeting will consider related-party transactions of up to ₹50 crore each with five counterparties: Torque Innovation EV, AVR Auto Industries, Jai Bharat Engineering Tools, Jai Bharat Auto Components and Rajdhani Machinery Store. Brickwork Ratings India, a SEBI-registered entity, will monitor how the proceeds are deployed.

Zelio currently runs plants in three states. The flagship Ladwa facility in Haryana spans 263,450 sq. ft. The Coimbatore plant in Tamil Nadu covers roughly 39,000 sq. ft. and the Cuttack site in Odisha about 30,500 sq. ft. The Patan three-wheeler plant under development would add a fourth site and move the company beyond its existing footprint.

The company says the money serves a wider growth push, not just the new plant. "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," Managing Director Kunal Arya said in a statement. "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."

The financial backdrop supports the expansion case. Zelio posted standalone revenue from operations of ₹303.54 crore in FY2025–26, up 76.28% year-on-year. The company reports a 121% revenue CAGR over the last four years and says it has been profitable since inception.

The company is also young on the public markets. Zelio listed on the BSE SME platform in October 2025 at an issue price of ₹136 per share, through an IPO comprising a ₹62.83 crore fresh issue and a ₹15.50 crore offer for sale — a total of roughly ₹78.34 crore. A preferential issue at ₹853 per share, more than six times the IPO price, signals how the market has repriced the stock since listing, though the final pricing depends on the pending approvals.

Distribution is scaling in parallel with capacity. Zelio currently has more than 400 dealers across over 25 states and targets a network exceeding 550 dealerships by FY27.

What to watch next: the EGM vote on October 20, 2026, BSE's in-principle approval for the issue, and concrete capacity numbers for the Patan plant — none of which the company has disclosed yet.