Zelio E-Mobility, an electric vehicle manufacturer listed on BSE SME, approved a proposal to raise up to ₹167.95 crore through a preferential issue of equity shares and convertible warrants. The board sanctioned issuing 9.73 lakh equity shares at ₹853 each to four non-promoter institutional and private investors, aggregating nearly ₹83 crore. This fundraising move was announced today to support the company’s growth initiatives, according to inc42.com.
The equity shares will be allotted to Motilal Oswal Financial Services (₹40.1 crore), Calliope Capital Advisors LLP (₹31.4 crore), Param Value Investments (₹8.5 crore), and Hem Growth Opportunities Fund (around ₹3 crore). Concurrently, the board approved issuing over 9.96 lakh convertible warrants at the same price to three promoters—Niraj Arya, Deepak Arya, and Kunal Arya—to raise an additional ₹85 crore. Promoters will pay 25% upfront for the warrants, with the balance payable upon conversion within 18 months.
Post full conversion of warrants and equity allotment, the promoter stake will dilute from 72.8% to 70.9%, while public shareholding will increase from 27.2% to 29.1%. The total issue size exceeding ₹100 crore triggered the appointment of SEBI-registered Brickwork Ratings India to monitor the utilization of funds, ensuring regulatory compliance. This fundraising round positions Zelio among EV manufacturers actively securing capital to expand operations amid growing market demand.
The preferential issue pricing at ₹853 per share and the involvement of notable investors like Motilal Oswal Financial Services highlight investor confidence in Zelio’s growth prospects. The company will now seek shareholder approval to finalize the fundraising, marking a critical step in its capital-raising strategy.