OnEMI Tech IPO sees lacklustre subscription on Day 2; GMP stands at 1%

OnEMI Technology Solutions initial public offering (IPO) was subscribed 60 percent on the second day of bidding on Monday.

The company’s shares are witnessing a muted response in the grey market. The shares are commanding a grey market premium (GMP) of around Rs 1.1, indicating a listing gain of less than 1 percent, according to Investorgain. Another tracking platform IPO Watch also pegged the GMP at below 1 percent, indicating poor listing gains.

The issue received bids for 2.38 crore shares against 3.97 crore shares on offer, according to NSE data.

The portion for Qualified Institutional Buyers (QIBs) was subscribed 1.45 times. The non-institutional investors’ category saw 50 percent subscription, while the Retail Individual Investors (RIIs) segment was subscribed 16 percent.

The company had earlier raised Rs 278 crore from anchor investors.

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The Rs 926-crore IPO will close on May 5. The price band for the issue has been fixed at Rs 162-171 per share, valuing the company at nearly Rs 2,900 crore at the upper end.

The offer includes participation from several selling shareholders, including Ammar Sdn Bhd Investor, 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.

Proceeds from the fresh issue will be used to strengthen the capital base of its subsidiary, Si Creva, to support future funding requirements and for general corporate purposes.

Founded in 2016, the company operates the digital lending platform Kissht, which provides credit solutions to young consumers in the mass market segment.