backed OnEMI IPO opens today: Should you subscribe?

Temasek-backed OnEMI IPO opens today: Should you subscribe?

Ahead of the issue opening, OnEMI Technology raised ₹277.7 crore from anchor investors such as Citigroup Global Markets Mauritius, ACM Global Fund VCC, New York State Teachers Retirement System (managed by Goldman Sachs Asset Management), among others.

By Meghna Sen

The initial public offering (IPO) of Temasek-backed OnEMI Technology Solutions, the fintech firm behind the Kissht platform, will open for subscription on April 30 and close on May 5.

Ahead of the issue opening, the company raised ₹277.7 crore from anchor investors.

The anchor book saw participation from marquee institutions such as Citigroup Global Markets Mauritius, BNP Paribas Financial Markets – ODI, ACM Global Fund VCC, New York State Teachers Retirement System (managed by Goldman Sachs Asset Management), and Goldman Sachs Funds – India Equity Portfolio, among others.

Should you bid?

SBI Securities has not assigned a rating to the issue. In its note, the brokerage highlighted that OnEMI operates a technology-driven digital lending platform, offering loans through both its online platform (Kissht) and offline channels.

The company has delivered strong financial growth, with NII, PPOP, and NPAT clocking a CAGR of 15.8%, 29.6%, and 140.9%, respectively, between FY23 and FY25. Net interest margins stood at 18.6%, 16.8%, and 23.8% over FY23-FY25.

Asset quality remains healthy, with GNPA and NNPA at 2.9% and 0.4%, respectively, as of December 2025.

At the upper price band of ₹171, the issue is valued at a post-issue P/ABV of 1.6x.

Arihant Capital has recommended a 'Subscribe' rating, citing that the company is at an inflection point.

With key investments in technology, collections infrastructure, LAP branch network, and lender partnerships largely behind it, OnEMI is well-placed to benefit from operating leverage as AUM scales up.

BP Wealth has also assigned a 'Subscribe' rating, citing strong growth and improving profitability, while flagging asset quality and execution as key monitorables.

Key risks

A key concern remains the company's high exposure to unsecured lending, which accounted for 94.2% of total AUM as of 9MFY26.

The business also has a relatively high dependence on partner-led revenue streams. Sourcing and servicing fees contributed 26.5%, 17.8%, 9.8%, and 7.9% to revenue from operations in 9MFY26, FY25, FY24, and FY23, respectively. Insurance commissions added another 3.8% in 9MFY26.

Additionally, contingent liabilities stand at ₹1,793.5 crore, largely comprising a corporate guarantee of ₹1,734.5 crore issued on behalf of its subsidiary, along with tax-related matters and accrued dividends.

Issue details

The IPO is priced in the range of ₹162-₹171 per share, with a face value of ₹1. Investors can bid for a minimum lot of 87 shares, translating to an investment of ₹14,877 at the upper band.

The company aims to raise ₹925.92 crore through the offering, which includes a fresh issue of ₹850 crore and an offer-for-sale of 44.39 lakh shares worth ₹75.9 crore by existing investors, including Temasek's Vertex, Ventureast Proactive Fund, and Ammar Sdn Bhd.

Of the fresh issue proceeds, ₹637.5 crore will be infused into its NBFC arm, Si Creva Capital Services, to support growth, while the rest will be used for general corporate purposes.

At the upper price band, the company is valued at ₹2,881.06 crore.

JM Financial, HSBC Securities, Nuvama Wealth Management, SBI Capital Markets, and Centrum Broking are the book-running lead managers, while Kfin Technologies is the registrar.

The allotment is expected on May 6, with listing likely on May 8 on the NSE and BSE.

About the company

Incorporated in 2016, OnEMI Technology Solutions is a technology-led lending platform offering consumer and MSME loans.

It operates through its platforms Kissht and Ring, enabling EMI-based financing across online and offline merchants. Its NBFC arm, Si Creva Capital Services, handles underwriting, disbursement, KYC, and collections.

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