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Zelio E-Mobility To Raise ₹168 Cr Via Preferential Issue

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Zelio E-Mobility To Raise ₹168 Cr Via Preferential Issue

Electric vehicle (EV) manufacturer Zelio E-Mobility’s board of directors approved a proposal today to raise up to ₹167.95 Cr via a preferential issue of equity shares and convertible warrants to fund its growth initiatives.

The BSE SME listed company will issue up to 9.73 Lakh equity shares at an issue price of ₹853 per share to four non-promoter institutional and private investors, aggregating to nearly ₹83 Cr. The allottees would be Motilal Oswal Financial Services to get ₹40.1 Cr, Calliope Capital Advisors LLP (₹31.4 Cr), Param Value Investments (₹8.5 Cr), and Hem Growth Opportunities Fund (nearly ₹3 Cr). 

Simultaneously, the board approved issuing over 9.96 Lakh convertible warrants at the same issue price to three promoters, Niraj Arya, Deepak Arya, and Kunal Arya, to raise an additional sum of nearly ₹85 Cr. 

For the warrants, the promoters will pay 25% or ₹21.24 Cr at the time of allotment, while the remaining 75% (₹63.72 Cr) will be payable when the warrants are converted into equity shares. The warrants can be converted within 18 months of allotment. 

Following the full conversion of warrants and allotment of equity shares, the promoter group’s stake in Zelio will dilute from 72.8% to 70.9%, whilst public shareholding will rise from 27.2% to 29.1%. 

As the total issue exceeds ₹100 Cr, the board appointed SEBI-registered Brickwork Ratings India to monitor how the proceeds of the fundraise would be utilised in accordance with regulations. 

The company will seek shareholder approval via an EGM, which is scheduled for October 20.


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