The Rs 926 crore IPO of OnEMI Technology Solutions has seen moderate demand so far, with overall subscription at 60% by Day 2. Interest is largely driven by institutional investors, while retail participation remains weak. A subdued grey market premium below 1% signals cautious investor sentiment toward the issue.

OnEMI Technology Solutions IPO Day 3: GMP slips under 1%; overall subscription at 60%. Key details

Synopsis

The Rs 926 crore IPO of OnEMI Technology Solutions has seen moderate demand so far, with overall subscription at 60% by Day 2. Interest is largely driven by institutional investors, while retail participation remains weak. A subdued grey market premium below 1% signals cautious investor sentiment toward the issue.

The Rs 926 crore IPO of OnEMI Technology Solutions has moved into its third day of bidding. The grey market premium (GMP) has softened below 1%, indicating muted investor sentiment.

By the close of Day 2, the issue was subscribed 60% of the total 3.97 crore shares on offer. Retail investors showed limited participation, subscribing 16% of their 1.99 crore share allocation. Non-institutional investors (NIIs) displayed comparatively better traction, covering 50% of their 85.36 lakh share quota. Qualified institutional buyers (QIBs) drove demand, with bids reaching 1.45 times their allotted 1.13 crore shares.

OnEMI Technology IPO: price band, issue size, and schedule

The IPO of OnEMI Technology Solutions is priced in the range of Rs 162 to Rs 171 per share, aiming to raise Rs 926 crore in total. The offering includes a fresh issue of Rs 850 crore and an offer for sale (OFS) worth Rs 76 crore. The subscription period is open until May 5, with the stock likely to list in early May.

GMP and expected listing price

In the grey market, the IPO is commanding a premium of շուրջ Rs 1.5 per share over the upper price band of Rs 171. This suggests a tentative listing price of about Rs 172, indicating limited upside expectations.

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About the company

OnEMI Technology Solutions operates the digital lending platform Kissht, which provides personal and business loans through a fully online process. The company manages the entire loan lifecycle—from onboarding customers to repayment and collections—generating revenue via interest income and fees from lending partners.

The platform has scaled significantly, reaching more than 6.3 crore users. Its data-driven credit evaluation system, combined with strategic partnerships, has enabled wider access to credit, especially for underserved segments.

Financial performance

The company’s financials show a mixed trend. Revenue declined to დაახლოებით Rs 1,352 crore in FY25 from Rs 1,700 crore in the previous year. However, profitability improved, with net profit rising to Rs 160.6 crore.

Margins have seen strong expansion, with EBITDA margins climbing to nearly 30%, up from below 10% two years ago.

Use of proceeds

Of the IPO proceeds, Rs 637.50 crore will be used mainly to bolster the capital base of its NBFC subsidiary, Si Creva, enabling it to support future loan expansion. The remaining funds will be allocated toward general corporate purposes.

Valuation and peer comparison

At the upper end of the price band, OnEMI Technology Solutions is valued at roughly 10–12 times its earnings and about 0.9 times its book value. This places it at a relatively lower valuation compared to established players like Bajaj Finance and SBI Cards and Payment Services.

Risks to consider

The business faces key risks, largely due to its significant exposure to unsecured lending, which accounts for over 90% of its loan book. This heightens vulnerability to credit risk, especially during economic downturns.

Additionally, the company’s growth depends heavily on its ability to continuously acquire and retain customers. Regulatory changes in the digital lending space could also impact operations, while sustained growth may require ongoing capital infusion.

Should you subscribe?

Brokerages have given a cautious outlook on the IPO. Swastika Investmart has given it a “neutral” rating, pointing to fair valuations but expressing concerns over high unsecured lending exposure and uneven financial performance. It suggests investors wait for clearer signs of stable growth.

Equivision acknowledged the company’s scalable AI-driven platform and relatively strong asset quality, but raised concerns around the durability of growth and associated credit risks.

On the other hand, SBICAP Securities Research highlighted solid financial performance in recent years. Between FY23 and FY25, the company reported a CAGR of 15.8% in net interest income, 29.6% in pre-provision operating profit, and 140.9% in net profit. Margins have remained robust, with net interest margins ranging from 16.8% to 23.8% during the same period. Asset quality also appears stable, with gross NPAs at 2.9% and net NPAs at 0.4% as of December 2025. At Rs 171 per share, the IPO is valued at a post-issue price-to-adjusted book value (P/ABV) multiple of 1.6x, which analysts view as reasonable given the growth outlook, though risks remain.

Overall, while valuations and profitability metrics look encouraging, the high unsecured lending exposure and evolving regulatory environment warrant a cautious approach from investors.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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