Omega Seiki plans to come out with IPO worth up to USD 250 million

Electric vehicle maker Omega Seiki Mobility plans to come out with an IPO worth USD 200-250 million by the first quarter of the next fiscal, according to its Chairman Uday Narang.

Narang, who is also the company’s founder, said that initially, the plan was to come out with the Initial Public Offering (IPO) by March 2023 but now it has been delayed by a few months. The company, part of the Anglian Omega Group, manufactures cargo and passenger electric three-wheelers and small commercial vehicle M1KA. Besides, it is in the process of launching an electric two-wheeler as well as trucks in the higher range.

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“We are expanding our (presence in) two, three and four-wheelers and also passenger segments. So, we need to raise about USD 500 million. A part of the fund raise we need to do through the IPO,” Narang told PTI. “We had initially thought of coming out with our IPO by March 2023… now we are looking at listing the company either in the US or UK market. So, we thought it better to delay it by 4-5 months and make it big,” he said.

He also said that the IPO size is expected to be USD 200-250-million and merchant bankers have been roped in with respect to the proposed offer. At current exchange rate, it will amount to Rs 1,580 crore to Rs 1,975 crore. The IPO is expected to be launched by the first quarter of next financial year. Narang said that he would not be diluting more than 26-30 per cent stake in the company, adding that reducing the shareholding to 20-25 per cent in the company like some startup founders have done would not be the “right strategy”.

Omega Seiki is getting ready for the global play with all backward integration such as charging infra, battery management system, Powertrain and motor manufacturing. The company claims its three-wheelers order book stands at over 50,000 vehicles. OSM’s cargo three-wheeler range comprises Rage+, Rage+ Rapid, Rage+ Frost and Rage+ Swap. It recently unveiled its passenger electric three-wheeler stream for last-mile mobility. Narang said the company will be selling its small commercial vehicle M1KA in the US market.

In April, Omega Seiki announced its plans to set up a 1 million per annum capacity-manufacturing plant for three-wheelers in Karnataka at an investment of USD 250 million. The plant is expected to be completed by FY 2024. Recently, the company also opened an integrated manufacturing facility in Chakan in Pune with an annual capacity of 6,000 vehicles per annum. The capacity at the plant, which is the fourth for the company, is planned to be scaled up to 30,000 EVs per annum.