Estimated Reading Time: 2 minutes
According to Uday Narang, the Chairman of Omega Seiki Mobility, the company plans to issue an Initial Public Offering (IPO) worth USD 200-250 million by the end of the first quarter of the next financial year. Narang, the founder of the company, stated that originally the goal was to have the Initial Public Offering (IPO), by March 2023, but it has been postponed by a few more months.
The company is part of the Anglian Omega Group and manufactures passenger and cargo electric three-wheelers as well as small commercial vehicles M1KA. It is also working on launching an electric two-wheeler and trucks in the higher range. We need to raise approximately USD 500 million, Uday said.
Narang explained that part of the fundraising must be done through the IPO. “Initially, we had planned to have our IPO in March 2023.” We are now looking to list the company in either the US or UK markets. He said that it was better to wait for it to be completed within 4-5 months, and then make it big.” He stated that the proposed IPO is expected to have a size of USD 200-250 million and that merchant bankers had been contacted.
It will be Rs 1,580 crore to Rs 1,975 crore at the current exchange rate. The IPO will be launched in the first quarter of next year.
Narang stated that he will not dilute more than 26-30% of the company’s stake and that it would be a mistake to reduce the shareholding to 20-25% like some founders of startups have done.
According to the company, its three-wheeler order book is more than 50,000 units. The company recently revealed its passenger electric three-wheeler stream, which is designed for last-mile mobility.
Narang stated that the company would be selling the M1KA small commercial vehicle in the US. In April, Omega Seiki Mobility announced its plans to set up a 1 million per annum capacity-manufacturing facility for three-wheelers in the state of Karnataka at an investment of USD 250 million. It is expected that the plant will be complete by FY 2024.
The company recently opened an integrated manufacturing plant in Chakan, Pune. It has a capacity to produce 6,000 vehicles annually. This plant is the fourth in the company’s portfolio. It is expected to grow to 30,000 EVs annually.