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OnEMI Technology Solutions IPO subscription status: The initial public offering of OnEMI Technology Solutions Ltd, which runs the digital lending platform Kissht, garnered a subscription of 24% on its opening day of bidding this Thursday, 30 April.
According to NSE data, the IPO received bids for 9,433,584 shares, while 39,762,250 shares were available for purchase.
The Qualified Institutional Buyers (QIBs) segment saw a subscription rate of 66%. The non-institutional investors' portion achieved a 10% subscriptionrate, and the Retail Individual Investors (RIIs) category drew 6% of bids.
OnEMI Technology Solutions Ltd announced on Wednesday that it has raised ₹278 crore from anchor investors.
The ₹926-crore offering will conclude on 5 May. OnEMI Technology Solutions IPO price band has been set between ₹162-171 per share, positioning the company’s valuation at approximately ₹2,900 crore at the higher end of the range.
The minimum lot size is set at 87 equity shares, requiring a minimum investment of ₹14,877 for retail investors at the upper price band.
Approximately 50% of the offering is allocated to qualified institutional buyers (QIBs), 35% to retail investors, and the remaining 15% to non-institutional investors (NIIs).
OnEMI Technology Solutions IPO GMP is +4.5. 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 ₹175.5 apiece, which is 2.63% higher than the IPO price of ₹171.
Considering grey-market activity over the past six sessions, today’s IPO GMP is showing an upward trend and is anticipated to have a solid listing. The lowest GMP recorded is ₹0.00, while experts note the highest GMP is ₹7.50.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Anand Rathi Research stated that at the upper price band, the company is valued at 1.4x FY25 P/B, implying a post-issue market capitalization of ₹28,810 million.
The firm highlighted that approximately 94% of the company’s loan book is unsecured, indicating a relatively higher-risk lending profile. However, it also noted that with evolving consumer lifestyles, the company has effectively scaled its digital loan distribution and is well-positioned to capitalize on future growth opportunities.
Anand Rathi Research further emphasized that the company has built a strong user base of 53 million, backed by a proven platform and substantial headroom in India’s underpenetrated credit market.
As per Swastika Investmart, the stock is presently trading at an appealing valuation of 10.8x P/E and 0.91x P/B, indicating a significant discount in comparison to competitors like Bajaj Finance.
The brokerage emphasized the company's substantial scale, boasting a user base of over 6.3 crore and a notable Net Promoter Score ranging from 91 to 95, which is rare in the lending sector. Nevertheless, it also pointed out important risks, noting that approximately 94% of the loan portfolio is unsecured, rendering the business highly susceptible to economic downturns or stricter regulatory actions from the RBI.
In FY25, performance declined, although there was a slight rebound in the initial nine months of FY26; however, maintaining consistency is still an issue. The brokerage pointed out that even with a unique business model and appealing valuation, factors like unsecured lending risks and outstanding legal matters call for careful consideration. Consequently, more risk-averse investors might opt for a wait-and-see strategy before making any commitments.
The initial public offering (IPO) includes a new equity share issue totaling ₹850 crore, along with an offer-for-sale (OFS) of 44,39,788 equity shares valued at ₹76 crore at the upper price range by current shareholders. This brings the overall size of the issue to ₹926 crore.
Funds generated from the new issue will be utilized to enhance the capital base of its subsidiary Si Creva to support upcoming funding needs, along with general corporate purposes.
The book-running lead managers for the issue are JM Financial, HSBC Securities and Capital Markets, Nuvama Wealth Management, SBI Capital Markets, and Centrum Broking, while the registrar for the issue is KFin Technologies Ltd.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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