Electric vehicle maker reveals initial public offering plans

Electric vehicle maker Omega Seki Mobility plans to launch an IPO of USD 200-250 million by the first quarter of the next fiscal, according to its president Uday Narang.
Narang, who is also the company’s founder, said that initially, the plan was to come out with an initial public offering (IPO) by March 2023, but it has now been delayed by a few months.

The company, part of the Anglian Omega Group, manufactures cargo and passenger electric tricycles and the small commercial vehicle M1KA. Also, it is in the process of launching an electric two-wheeler as well as high-end trucks.

Narang told PTI, “We are expanding our (presence) in two, three and four wheelers and passenger segment. So, we need to raise around USD 500 million. Part of the fund raising we need to do is through the IPO. needs to be done through.” ,

“We initially thought of coming up with our IPO by March 2023… Now we are looking at listing the company in the US or UK market. Hence, we did it with a delay of 4-5 months. And it’s better to make it bigger,” he said.

He also said that the size of the IPO is expected to be USD 200-250 million and that merchant bankers have been roped in with regard to the proposed offer.

At the current exchange rate, it will be Rs 1,580 crore to Rs 1,975 crore.

The IPO is expected to launch by the first quarter of the next financial year.

Narang said he would not sell more than 26-30 per cent stake in the company, adding that reducing stake in the company to 20-25 per cent like some startup founders would not be the “right strategy”.

Omega Seki is gearing up for the global game with all the backward integrations like charging infra, battery management system, powertrain and motor manufacturing.
The company claims to have over 50,000 vehicles in its three wheeler order book.

OSM’s cargo three-wheeler range includes 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 sell its small commercial vehicle M1KA in the US market.

In April, Omega Seki announced its plan to set up a 1 million per annum capacity-building 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 has also opened an integrated manufacturing facility at Chakan, Pune with an annual capacity of 6,000 vehicles. The plant’s capacity, which is the fourth for the company, is planned to be increased to 30,000 EVs per annum.

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