ALFA Finder
| Issue Price | ₹853Per Share/Warrant |
|---|---|
| Market Cap | ₹2,087 CrSmall Cap |
| Revenue TTM | ₹310.7 CrFY26 Operating |
| RSI | 66.83Bullish Zone |
| Deal value | ₹167.96 Cr |
| Share of market cap | 8.0% |
Key highlights
- Board approved issuance of 9.73 lakh equity shares at ₹853 per share, aggregating to ₹82.99 crore
- Issuance of 9.96 lakh convertible warrants at ₹853 each for an additional ₹84.95 crore
- Marquee investors including Motilal Oswal Financial Services and Calliope Capital Advisors are among the non-promoter allottees
- Promoter group subscribers include Mr. Niraj Arya, Mr. Deepak Arya, and Mr. Kunal Arya for the warrant issue
- Brickwork Ratings India Private Limited appointed as the Monitoring Agency for the utilization of proceeds
Details of the Preferential Issue
The fundraising exercise involves two primary instruments: fully paid-up equity shares and convertible warrants. The board has authorised the issuance of 9.73 lakh equity shares to four non-promoter allottees, including Motilal Oswal Financial Services and Calliope Capital Advisors. Simultaneously, 9.96 lakh warrants will be issued to three promoters, with each warrant convertible into one equity share within 18 months.
The issue price of ₹853 represents a premium of ₹843 over the face value of ₹10 per share. Subscribers to the warrants are required to pay 25% of the total consideration upfront, with the remaining balance due upon exercise of the conversion option.
Strategic Expansion and Use of Capital
The proceeds are earmarked for supporting Zelio's aggressive growth trajectory as it transitions from a regional player to a pan-India EV manufacturer. The company is currently scaling its manufacturing capacity to 2.4 lakh units annually, with new strategic hubs being established in Coimbatore and Cuttack to serve the Southern and Eastern markets. This capital injection will likely support the ramp-up of the 'Tanga' electric three-wheeler brand, which is expected to contribute up to 40% of future revenues.
By diversifying production locations, the firm aims to streamline its supply chain and reduce logistics costs significantly.
Financial Performance and Context
- Company reported an annual net profit of ₹28.39 crore on operating revenue of ₹310.71 crore in FY26
- Return on Equity (ROE) stands at 25.45% while Return on Assets (ROA) is 18.32%
- The stock trades at a TTM P/E of 73.53x compared to the sector average of 33.56x
- Operating margins have shown improvement from 7.8% to 12.2% over recent fiscal cycles
- The current market capitalization is approximately ₹2,087.29 crore with the stock trading near its 52-week high
Industry Trends and Market Outlook
Electrification in the Indian two-wheeler segment has crossed 10% penetration as of mid-2026, supported by falling battery costs and the PM E-DRIVE incentive scheme. Industry forecasts suggest e-scooter penetration could exceed 50% by 2031, driven by a narrowing price gap with internal combustion engine models. Zelio's focus on the affordable low-speed electric vehicle (LSEV) segment positions it to capture demand in Tier-2 and Tier-3 cities, where consumers prioritise lower total cost of ownership and ease of maintenance over high-speed performance.
| Share price | ₹986.9 |
|---|---|
| Market capitalisation | ₹2,087.29 Cr |
| Revenue (annual) | ₹310.71 Cr |
| Net profit (annual) | ₹28.39 Cr |
| P/E (TTM) | 73.53×Sector 33.56× |
| Promoter holding | 72.77% |
| FII holding | 0.09%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Zelio E-Mobility Limited announcing the outcome of the Board Meeting regarding preferential issue and warrant allotment. Market figures from a third-party data provider.
