OnEMI Tech IPO Continues to Struggle in Secondary Trading
OnEMI Technology Solutions (Kissht)
IPOOnEMI Technology Solutions IPO Sees 60% Subscription on Second Day of Bidding
The initial public offering (IPO) of OnEMI Technology Solutions has garnered a 60% subscription on the second day of bidding, Monday saw a moderate response from investors. However, the company's shares are witnessing a muted response in the grey market, with 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, while the non-institutional investors' category saw a 50 percent subscription. The Retail Individual Investors (RIIs) segment was subscribed 16 percent.
The company had earlier raised Rs 278 crore from anchor investors. 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.
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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.
| Subscription Category | Subscription Percentage |
|---|---|
| Qualified Institutional Buyers (QIBs) | 145% |
| Non-Institutional Investors | 50% |
| Retail Individual Investors (RIIs) | 16% |
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.
The shares are proposed to be listed on the BSE and NSE on May 8. The allotment is likely to be finalised on May 6.
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Investor Takeaway
Investors should be cautious about the muted response of OnEMI Technology Solutions IPO in secondary trading.
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