OnEMI Technology IPO: Retail interest low even as issue subscribed 34%; GMP slides to 2%

The offer will close for bidding tomorrow, i.e., on Tuesday, May 5. In case you don’t want to miss out on any essential details, here’s all you should know about the IPO.

OnEMI Technology IPO: Subscription details

So far the IPO has received overall bids for 1.36 crore shares against its for 3.97 crore shares. This translates into an overall subscription of 0.34x times, or 34%.

The Qualified Institutional Buyers (QIBs) segment is leading the pack, being subscribed 81% receiving bids for more than 91 lakh shares, against its ask of 1.1 crore equity shares.

While the Non-Institutional Investors category has been subscribed 23%, the retail investor segment received a mere subscription of 12%.

OnEMI Technology IPO: Shares at a premium of 2%

In the unlisted markets, the fintech’s shares are trading at a premium of over 2%, suggesting an estimated listing price of Rs 174.74, on the upper end of the price band. The company has fixed the share price band at Rs 162 to Rs 171.

Over the past week, the grey market premium has fluctuated and scaled down to 2% from 4%, which was the premium pre-IPO. However, readers should note that GMP is an unofficial metric to determine the listing price and changes based on market mood and sentiment.

OnEMI Technology IPO: Issue Size

The IPO is a book-built issue of Rs 925.92 crore. Of the total float, Rs 850 crore will be raised via the issuance of 4.97 crore fresh equity shares of Re 1 each, while investors will offload 44 lakh shares valued at Rs 75.92 crore through the Offer for Sale route.

The company said it raised Rs 277.78 crore from anchor bidding ahead of its opening. According to its press release, OnEMI Tech allocated 1.62 crore equity shares at Rs 171, which is the upper end of its price band.