Indian electric-vehicle maker Zelio E-Mobility’s board has approved a proposal to raise as much as ₹167.95 crore through a preferential issue of equity shares and convertible warrants, Inc42 reported on September 23.
The proposal still goes to shareholders. Inc42 says an extraordinary general meeting is scheduled for October 20 to consider the financing and several related-party transactions.
How the financing is split
Zelio plans to issue up to 973,000 shares at ₹853 apiece to four non-promoter institutional and private investors, raising nearly ₹83 crore. The proposed allotments are ₹40.1 crore to Motilal Oswal Financial Services, ₹31.4 crore to Calliope Capital Advisors, ₹8.5 crore to Param Value Investments and nearly ₹3 crore to Hem Growth Opportunities Fund.
A second part of the transaction would issue more than 996,000 convertible warrants to promoters Niraj Arya, Deepak Arya and Kunal Arya for nearly ₹85 crore. Inc42 reports that 25% of the warrant price, or ₹21.24 crore, would be due at allotment, with the remaining 75% payable when the warrants convert to shares.
What Zelio says the money is for
Zelio says the proposed capital would fund growth initiatives. The BSE SME-listed company operates through more than 300 dealers across over 25 Indian states and wants to expand that network to 550 dealers by the end of fiscal 2027.
The company also plans to lift annual manufacturing capacity from 180,000 vehicles to 240,000. Those targets are company plans rather than completed expansion, and the preferential issue remains subject to the shareholder process.
Technology