Image Source: Business Standard
Zelio E-Mobility Ltd, one of India’s fastest-growing electric vehicle manufacturers, has received the green light from the Securities and Exchange Board of India (SEBI) to launch its ₹78 crore SME initial public offering (IPO). The announcement, made on September 20, 2025, marks a significant milestone for the company as it gears up to expand operations and strengthen its position in the country’s booming EV market.
The IPO, managed by Hem Securities Ltd as the Book Running Lead Manager, is expected to go live by the end of September. With this move, Zelio joins the ranks of Ola Electric and Ather Energy as one of the few EV companies to enter the public market, signaling investor confidence in sustainable mobility solutions.
Key Highlights of the IPO Approval
SEBI has approved Zelio’s Draft Red Herring Prospectus (DRHP), clearing the path for its ₹78 crore SME IPO.
The offering will support Zelio’s next phase of growth, including manufacturing expansion and dealership network scale-up.
Zelio reported FY25 provisional revenue of ₹172.19 crore and profit after tax of ₹16 crore.
The company’s revenue grew at a CAGR of 83.29 percent between FY23 and FY25, with PAT surging at 128.76 percent.
Company Profile and Market Footprint
Rapid Growth Since Inception
Founded in 2021, Zelio E-Mobility has quickly carved a niche in the electric two- and three-wheeler segment.
The company boasts an annual production capacity of 72,000 units, with plans to scale further post-IPO.
Its product portfolio includes stylish, efficient e-scooters and three-wheelers designed for urban and semi-urban mobility.
Expansive Dealer Network
Zelio currently operates through more than 280 dealers across 20 states and union territories.
The company aims to expand this footprint to 1,000 dealerships by the end of 2025, enhancing accessibility and brand visibility.
Over 200,000 riders have adopted Zelio’s vehicles, reflecting strong consumer trust and market traction.
Financial Performance and Investor Appeal
FY25 provisional EBITDA stood at ₹21.02 crore, with a margin of 12.20 percent.
PAT margin reached 9.29 percent, supported by disciplined cost management and operational efficiency.
Net worth was reported at ₹26.67 crore, with Return on Equity (ROE) and Return on Capital Employed (ROCE) nearing 60 percent.
These metrics position Zelio as a financially sound candidate for public investment, especially in the SME segment.
IPO Objectives and Strategic Use of Funds
The ₹78 crore raised will be directed toward capacity expansion, R&D, and dealership development.
Zelio plans to invest in advanced manufacturing technologies and improve supply chain resilience.
A portion of the proceeds will also be allocated to marketing, brand building, and working capital needs.
Investor participation details and final issue structure will be disclosed closer to the IPO launch date.
Industry Context and Regulatory Landscape
The IPO comes amid a regulatory push for clean mobility and rising consumer demand for electric vehicles.
Government incentives, improved charging infrastructure, and environmental awareness are driving sector growth.
NSE’s 90 percent cap on retail investor participation in SME IPOs has cooled speculative gains, promoting long-term stability.
Zelio’s entry into public markets reflects a maturing EV ecosystem with credible players and transparent governance.
Conclusion
Zelio E-Mobility’s SEBI-approved ₹78 crore SME IPO is more than a financial event—it’s a strategic leap toward sustainable mobility leadership. With strong financials, a growing customer base, and ambitious expansion plans, the company is well-positioned to attract investor interest and scale its impact. As India’s EV revolution gains momentum, Zelio’s public debut could serve as a benchmark for innovation, resilience, and responsible growth.
Sources: YourStory, The Economic Times, SME Futures
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