SME IPO: Zelio E-Mobility stock surge nearly 20 pc in debut market trade

New Delhi, Oct 8 (PTI) Shares of Zelio E-Mobility, an electric two- and three-wheeler manufacturer, ended nearly 20 per cent higher than the issue price of Rs 136 in debut trade on Wednesday.

The stock started trading at Rs 154.90 apiece, marking a 13.8 per cent premium over the issue price on the BSE's SME platform.

Later, the scrip of the company ended at Rs 162.60 apiece, registering a jump of 19.56 per cent on the exchange.

At the end of market close, the company's market valuation stood at Rs 343.90 crore.

During the day, 21.87 lakh shares of the company were traded on the BSE SME.

The initial public offer of Zelio E-Mobility got subscribed 1.50 times on the final day of the share sale on Friday last week.

Zelio E-Mobility had fixed the price band at Rs 128–136 per share for its Rs 78.34-crore initial public offering (IPO).

The public issue is a mix of fresh issue of 46.20 lakh equity shares worth Rs 58.84 crore and an offer for sale of up to 11.4 lakh shares aggregating to Rs 15.50 crore.

Proceeds from the IPO are planned to be deployed towards repayment and prepayment of borrowings, capital expenditure for establishing a new manufacturing facility, meeting working capital needs, and general corporate purposes.

"The funds raised will help us expand our manufacturing capacity, strengthen R&D, grow our dealer network, and continue innovating in electric vehicle technology," Kunal Arya, Managing Director, Zelio E-Mobility, said.

Incorporated in 2021, Haryana-based Zelio E-Mobility manufactures, assembles, and supplies electric vehicles under the brands 'Zelio' for two-wheelers and 'Tanga' for three-wheelers. PTI HG HG MR