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OnEMI Technology Solutions IPO: On its opening day of bidding on Thursday, 30 April, OnEMI Technology Solutions Ltd, which operates the digital lending platform Kissht, achieved a subscription rate of 24% for its initial public offering.
According to NSE data, there were bids for 9,433,584 shares, even though 39,762,250 shares were available to buyers.
In the Qualified Institutional Buyers (QIBs) segment, the subscription rate reached 66%. The non-institutional investors' portion recorded a subscription of 10%, while the Retail Individual Investors (RIIs) category attracted 6% of bids.
OnEMI Technology Solutions Ltd announced on Wednesday, 29 April, that it has secured ₹278 crore from its anchor investors.
The ₹926-crore public offering will close on 5 May. OnEMI Technology Solutions' IPO price band has been set at ₹162 to ₹171 per share, valuing the company at around ₹2,900 crore at the upper end of the range.
The minimum lot size is 87 shares, requiring a minimum investment of ₹14,877 for retail investors at the higher price point.
About 50% of the offering is designated for qualified institutional buyers (QIBs), 35% for retail investors, and the remaining 15% for non-institutional investors (NIIs).
OnEMI Technology Solutions IPO GMP is +4. Considering the upper end of OnEMI Technology Solutions price band and the current premium in the grey market, the estimated listing price of OnEMI Technology Solutions share price was indicated at ₹175 apiece, which is 2.34% higher than the IPO price of ₹171.
Considering the grey-market activity over the past nine sessions, today's IPO GMP is showing an upward trend and is expected to have a strong listing. The lowest GMP recorded is ₹0.00, whereas the highest GMP is ₹7.50, according to analysts.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Anand Rathi Research indicated that at the highest price band, the company is assessed at a P/B ratio of 1.4 times for FY25, suggesting a post-issue market valuation of ₹28,810 million.
The firm noted that around 94% of its loan portfolio is unsecured, reflecting a relatively elevated lending risk profile. Nevertheless, it also noted that, amid changing consumer behaviour, the company has successfully expanded its digital loan distribution and is well-positioned to capitalise on future growth prospects.
Anand Rathi Research further highlighted that the firm has established a robust user base of 53 million, supported by a reliable platform and significant potential in India’s underutilised credit sector.
According to Swastika Investmart, the current trading valuation of the stock is attractive at 10.8x P/E and 0.91x P/B, suggesting a notable discount relative to rivals such as Bajaj Finance.
The brokerage highlighted the company's impressive scale, with a customer base exceeding 6.3 crore and a remarkable Net Promoter Score of 91-95, which is uncommon in the lending industry. However, it also warned of significant risks, noting that around 94% of the loan portfolio consists of unsecured loans, making the business highly vulnerable to economic recessions or more stringent regulatory measures from the RBI.
In FY25, performance declined, though a modest recovery was observed in the first nine months of FY26;consistency remains a challenge. The brokerage highlighted that, despite a distinct business model and an attractive valuation, risks associated with unsecured lending and pending legal issues necessitate cautious evaluation. As a result, more risk-averse investors may adopt a wait-and-see approach before making any investments.
As per Beacon Capital Advisors Pvt Ltd (Equivision), the firm has focused on enhancing customer quality and fostering sustainable growth, despite a 20% revenue decline in FY25 due to strategic pricing adjustments and a transition to longer-tenure loans. Nevertheless, assets under management (AUM) grew by approximately 57% year on year to ₹4,086.6 crore, reflecting substantial demand and scaling efforts.
Equivision noted in its report that a well-balanced combination of on-book lending through its RBI-registered NBFC subsidiary, Si Creva, along with partnerships with financial institutions for off-book lending, has improved capital efficiency, aided scalability, and broadened its customer base.
The company's asset quality continues to be a significant advantage, as it shows mid-tier GNPA results and surpasses competitors on key indicators such as the provision coverage ratio (PCR) and net NPAs. Furthermore, its scalable, AI-driven, cloud-native technology platform enables effective credit evaluation, access to underserved markets, and sustainable growth.
The initial public offering (IPO) includes a fresh issuance of equity shares amounting to ₹850 crore, along with an offer-for-sale (OFS) of 44,39,788 equity shares, valued at ₹76 crore at the upper end, from existing shareholders. This brings the issue's total to ₹926 crore.
The shareholders who are divesting their interests include Ammar Sdn Bhd Investor and Vertex Ventures SEA Fund III Pte. Ltd, Vertex Growth Fund Pte. Ltd, Vertex Growth Fund II Pte. Ltd, Ventureast Proactive Fund II, Endiya Seed Co-creation Fund, VenturEast Proactive Fund LLC, AION Advisory Services LLP, Ventureast Proactive Fund, and VenturEast SEDCO Proactive Fund LLC.
The proceeds from the new issue will be used to facilitate the capital expansion of its subsidiary, Si Creva, to meet forthcoming funding requirements, as well as for various corporate purposes.
The lead managers for this issue are JM Financial, HSBC Securities and Capital Markets, Nuvama Wealth Management, SBI Capital Markets, and Centrum Broking, while KFin Technologies Ltd will act as the registrar.
According to NSE data, the issue saw bids for 94,33,584 shares against the 3,97,62,250 shares on offer.
Among investor categories, the Qualified Institutional Buyers (QIBs) segment accounted for 66% of subscriptions, while the non-institutional investor segment accounted for 10%. The Retail Individual Investors (RIIs) quota lagged, garnering just 6% bids on day one.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.
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