Zelio E-Mobility IPO: Powering Up India's Electric Future – A Deep Dive
India's electric vehicle (EV) sector is buzzing with innovation and growth, with new players constantly emerging to meet the escalating demand for sustainable transportation. In this electrifying landscape, Zelio E-Mobility Ltd. is poised to make its mark with an upcoming SME Initial Public Offering (IPO). This blog post offers a comprehensive analysis of Zelio E-Mobility's public offering, exploring everything from its business model to financial health, helping potential investors make informed decisions.
Key Details of the Public Offering
Understanding the core aspects of any IPO is crucial. Here’s a quick overview of what the Zelio E-Mobility IPO entails:
| Aspect | Information |
|---|---|
| Issue Type | SME Book Build Issue |
| IPO Price Band | ₹129 to ₹136 per share |
| Face Value | ₹10 per share |
| Total Issue Size | ₹78.34 Crores (57,60,000 shares) |
| Issue Composition | Fresh Issue: ₹62.83 Cr | Offer for Sale: ₹15.50 Cr |
| Listing Exchange | BSE SME |
Zelio E-Mobility: Driving Towards an Electric Future
Established in 2021, Zelio E-Mobility Limited is a dynamic player in the rapidly expanding electric vehicle market. The company specializes in the manufacturing, assembly, and supply of electric two-wheelers and three-wheelers, operating under the distinct brands "Zelio" for its E-2Ws and "Tanga" for its 3Ws. Their commitment lies in producing environmentally friendly vehicles that boast lower emissions, reduced noise pollution, and contribute to overall energy sustainability.
With a robust manufacturing facility spanning 24,458.01 sq. meters in Ladwa, Haryana, Zelio E-Mobility possesses an impressive annual production capacity of 72,000 electric two-wheelers and three-wheelers. Their diverse product portfolio includes popular models like EEVA, EEVAZX, GRACY, Legender, Mystery, and XMen, catering to a broad spectrum of customer needs. As of February 28, 2025, the company has approximately 176 employees contributing to its operations.
Competitive Advantages
- Widespread Dealer Network: An extensive network ensures broad market reach across major parts of India.
- Robust Quality Assurance: A strong focus on quality ensures standardized and reliable products.
- Diversified Customer Base: Revenue streams are well-distributed across various geographical regions, reducing dependency.
- Demonstrated Financial Strength: The company has a proven record of consistent financial performance.
- Experienced Leadership: A seasoned team of promoters and senior management drives the company's vision and strategy.
Financial Insights: A Glimpse at Performance
A crucial aspect for any investor is the company's financial health. Zelio E-Mobility has shown promising growth in its financial statements.
Restated Financial Performance (Amounts in ₹ Crore)
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets | 53.89 | 29.08 | 15.47 | 8.57 |
| Total Income | 76.04 | 94.95 | 1.62 | 13.03 |
| Profit After Tax (PAT) | 7.05 | 6.31 | 3.06 | 1.27 |
| Net Worth | 17.71 | 10.67 | 4.36 | 1.30 |
| Total Borrowing | 21.97 | 14.11 | 9.59 | 3.73 |
Key Performance Indicators (KPIs as of March 31, 2024)
The company's performance indicators provide further insight into its operational efficiency and financial stability.
| KPI | Value |
|---|---|
| Market Capitalization | ₹287.64 Crores |
| Return on Equity (ROE) | 83.99% |
| Return on Capital Employed (ROCE) | 34.84% |
| Debt/Equity Ratio | 1.32 |
| Return on Net Worth (RoNW) | 59.15% |
| PAT Margin | 6.68% |
| Price to Book Value | 21.09 |
| Earnings Per Share (Pre-IPO) | ₹3.82 |
| Earnings Per Share (Post-IPO) | ₹6.66 |
| Price/Earnings (Pre-IPO) | 35.63x |
| Price/Earnings (Post-IPO) | 20.41x |
Purpose of the Public Offering: Fueling Future Growth
The funds raised from the Zelio E-Mobility IPO are strategically earmarked for key growth initiatives, demonstrating the company's forward-looking approach:
- Debt Management: A significant portion (₹24.5 Crores) will be allocated towards the repayment or pre-payment of existing borrowings, strengthening the company's balance sheet.
- Capacity Expansion: Investing ₹23.89 Crores to establish a new manufacturing unit, reflecting ambitions to scale production and meet market demand.
- Operational Capital: Ensuring sufficient working capital to support day-to-day operations and growth.
- General Corporate Needs: Addressing various other corporate requirements to maintain smooth functioning and strategic flexibility.
Investment Snapshot: Understanding the Lot Size & Application
For prospective investors, understanding the minimum investment requirements and application structure is essential. The Zelio E-Mobility IPO is designed with specific lot sizes for different investor categories.
Subscription Categories and Lot Details (Based on Upper Price Band)
| Investor Category | Minimum Lots | Minimum Shares | Minimum Amount (₹) |
|---|---|---|---|
| Retail Individual Investor (Min/Max) | 2 | 2,000 | 2,72,000 |
| Small HNI (Min) | 3 | 3,000 | 4,08,000 |
| Small HNI (Max) | 7 | 7,000 | 9,52,000 |
| Big HNI (Min) | 8 | 8,000 | 10,88,000 |
The issue reserves allocations for different investor categories: Not more than 50% for Qualified Institutional Buyers (QIBs), not less than 35% for Retail Investors, and not less than 15% for Non-Institutional Investors (NIIs).
Key Dates to Mark Your Calendar: IPO Timeline
Staying updated with the IPO schedule is vital. Here’s a tentative timeline for the Zelio E-Mobility IPO:
Promoter Leadership and Shareholding
The leadership of Zelio E-Mobility Limited is steered by its dedicated promoters: Niraj Arya, Kunal Arya, Deepak Arya, and Sayuri Arya. Their vision and commitment have been instrumental in the company's journey so far.
| Holding Stage | Percentage |
|---|---|
| Pre-Issue Promoter Holding | 100.00% |
| Post-Issue Promoter Holding | 75.77% |
Strategic Outlook: A SWOT Analysis
To provide a balanced perspective, a brief SWOT analysis highlights the internal and external factors affecting Zelio E-Mobility's prospects.
Strengths
- Strong market presence with an extensive dealer network across India.
- Commitment to eco-friendly products, aligning with global sustainability trends.
- Demonstrated financial track record and experienced management team.
- Diversified product portfolio catering to both electric two-wheeler and three-wheeler segments.
Weaknesses
- Relatively young company (incorporated 2021) compared to established automotive giants.
- Higher debt-to-equity ratio, indicating reliance on borrowed capital.
- Potential dependence on government policies and incentives for sustained EV adoption.
Opportunities
- Booming Indian EV market, fueled by rising conventional fuel prices and environmental awareness.
- Continued government support through subsidies and schemes like FAME India.
- Potential for expansion into new geographies and product variations within the EV ecosystem.
- Ongoing technological advancements in battery efficiency and charging infrastructure.
Threats
- Intense competition from both domestic and international players, including well-established brands and emerging startups.
- Fluctuations in the prices of critical raw materials for EV manufacturing (e.g., lithium, cobalt).
- Infrastructure challenges such as adequate charging station availability and robust battery swapping networks.
- Potential for adverse regulatory changes or shifts in government subsidy policies.
IPO Support System: Key Intermediaries
The IPO process is facilitated by key intermediaries to ensure smooth execution and compliance.
- Book Running Lead Manager: Hem Securities Ltd.
- Registrar to the Issue: Maashitla Securities Pvt.Ltd.
Connect with Zelio E-Mobility
For direct inquiries or further information about the company, you can reach out to:
- Address: Shop No. 542, 1st Floor, Auto Market, Hisar, Haryana, 125001
- Phone: +91 9254993057
- Email: cs@zelioebikes.com
- Website: zelioebikes.com
Final Thoughts: Navigating Your Investment Decision
The Zelio E-Mobility IPO presents an intriguing opportunity to invest in a growing electric vehicle manufacturer operating in an exciting and evolving sector. With ambitious plans for expansion and a demonstrated track record of financial growth, the company aims to solidify its position in the market. As with any investment, it is crucial for potential investors to conduct their own thorough due diligence, carefully consider their risk appetite, and consult with financial advisors before making a decision. The future of mobility is increasingly electric, and companies like Zelio E-Mobility are at the forefront of this transformative journey.