Zelio E-Mobility Makes Strong Debut with 19.56% Premium, Lists at ₹162.60 Against Weak Subscription

Zelio E-Mobility Limited, the electric vehicle manufacturer producing two-wheelers under "Zelio" brand and three-wheelers under "Tanga" brand with 72,000 annual production capacity in Haryana facility, made a strong debut on BSE SME on October 8, 2025. After closing its IPO bidding between September 30-October 3, 2025, the company commenced trading with a 13.90% premium opening at ₹154.90 and rose to ₹162.60 with gains of 19.56%.

Zelio E-Mobility Listing Details

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Zelio E-Mobility Limited launched its IPO at ₹136 per share with a minimum investment of 2,000 shares costing ₹2,72,000. The IPO received weak response with a subscription of just 1.50 times - individual investors at weak 1.32 times, NII at modest 1.76 times, and QIB at modest 1.61 times.

First-Day Trading Performance Outlook

Listing Price: Zelio E-Mobility share price opened at ₹154.90 representing a premium of 13.90% from the issue price of ₹136, and rose to ₹162.60, delivering solid gains of 19.56% for investors reflecting positive market sentiment towards electric mobility sector.

Growth Drivers and Challenges

Growth Drivers:

• Diversified Product Portfolio: Comprehensive electric vehicle range including two-wheelers (EEVA, EEVAZX, GRACY, Legender, Mystery, XMen) and three-wheelers under "Zelio" and "Tanga" brands focusing on eco-friendly, lower emissions, reduced noise mobility solutions.
• Exceptional Financial Growth: Outstanding PAT growth of 154% to ₹16.01 crore and revenue growth of 83% to ₹173.80 crore in FY25, exceptional ROE of 85.75%, moderate ROCE of 36.86%, demonstrating strong business momentum.

Challenges:

• Sustainability Concerns: Boosted FY25 performance with 154% PAT growth and 83% revenue growth raising eyebrows about sustainability amidst rising competition in electric vehicle segment requiring continuous validation.
• Greedy Valuation Metrics: Alarming price-to-book value of 21.09x, post-issue P/E of 17.97x appearing greedily priced, elevated debt-to-equity ratio of 1.32 indicating substantial financial leverage requiring careful management.

Utilisation of IPO Proceeds

• Debt Reduction and Expansion: ₹20.00 crore for debt repayment improving financial leverage from 1.32x debt-to-equity ratio, and ₹19.45 crore for capital expenditure towards setting up new manufacturing unit expanding production capacity.
• Working Capital and General Purposes: ₹8.00 crore for working capital requirements supporting operational scale-up, and ₹9.09 crore for general corporate purposes.

Financial Performance of Zelio E-Mobility

• Revenue: ₹173.80 crore for FY25, showing exceptional growth of 83% from ₹94.90 crore in FY24, reflecting strong market demand for electric vehicles though sustainability concerns remain.
• Net Profit: ₹16.01 crore in FY25, representing extraordinary growth of 154% from ₹6.31 crore in FY24, indicating substantial operational leverage though boosted performance raises sustainability questions amidst rising competition.
• Financial Metrics: Exceptional ROE of 85.75%, moderate ROCE of 36.86%, elevated debt-to-equity ratio of 1.32, healthy PAT margin of 9.30%, moderate EBITDA margin of 12.21%, alarming price-to-book value of 21.09x, and estimated market capitalisation of ₹343.90 crore.