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The IPO includes a new issue of 46.2 lakh shares and an offer to sell 11.4 lakh shares, totalling 57.6 lakh equity shares with a face value of ₹10 each.
The price range is ₹129–₹136 per share, and applications are accepted in lots of 2,000 shares, meaning that retail investors must invest a minimum of ₹2.58–2.72 lakh.
The registrar is Maashitla Securities, and the book running lead manager is Hem Securities. The proposed listing of shares on the BSE SME platform is expected to take place on October 8.
Rapid Growth and Execution Focus
Since its launch in 2021, Zelio has experienced rapid growth, announcing FY25 revenues of ₹172 crore, EBITDA of ₹21 crore, and profit after tax of ₹16 crore. Due to its scalable operations and rapid dealer expansion, the company had a remarkable return on equity (ROE) of almost 60% and a net worth of ₹26.67 crore. Between FY23 and FY25, revenues increased at a compound annual growth rate (CAGR) of 83%, while net profit increased at a CAGR of 128%, surpassing the majority of competitors in the affordable and utility EV market.
The company has delivered more than one lakh low-speed scooters across the country through its “Zelio” (electric two-wheelers) and “Tanga” (three-wheelers) brands. EEVA, EEVAZX, Gracy, Legender, Mystery, XMen, Tanga, and Tanga e-Loader are important products.
With 337 dealers spread across 20 states and union territories as of August, Zelio’s top markets were Gujarat, Uttar Pradesh, and Haryana. The 24,458 square metre manufacturing facility at the Hisar, Haryana headquarters can produce 72,000 vehicles a year.
Leadership Voices and IPO Objectives
“We are doubling our growth every year, but the market is growing even faster,” says Managing Director Kunal Arya, framing the offering as timely.
The timing of this IPO is ideal to spur growth and innovation because demand is exceeding our capacity. With the money raised, we will be able to construct top-notch facilities, introduce new models, improve after-sales service, and satisfy our customers’ growing demands., he further said
Funds from the IPO are designated for working capital, capital expenditures for new manufacturing capacity, loan repayment, and general business needs. Niraj Arya, Kunal Arya, and Deepak Arya are the promoters.
Investor View: Appetite and Risks
Analysts view Zelio’s IPO as a test of sustained investor appetite for EV-linked SME stories, especially as competition intensifies. With a post-issue P/E of 23–25x, valuations reflect market optimism over its growth and margins—net margin at 9%, ROE/ROCE near 60%, and channel penetration across Tier 2 and Tier 3 centres.
But as a market strategist at a Mumbai broking points out, “SME IPOs usually carry liquidity and execution risk, but Zelio’s demonstrated traction in affordable EVs and its dual play in commercial three-wheelers may help it carve a defensible niche. The key will be scaling up while defending share against larger incumbents like Ola, TVS, and Bajaj.”
The road ahead will test Zelio’s ability to turn IPO proceeds into lasting advantage—as it expands capacity, launches new electric models, and navigates India’s swiftly evolving mobility landscape.
