OnEMI Technology Solutions IPO Update: Subscription Progress and Key Details to Consider

OnEMI Technology Solutions' IPO Sees 24% Subscription Rate on Opening Day

OnEMI Technology Solutions Ltd, the parent company of digital lending platform Kissht, has achieved a subscription rate of 24% for its initial public offering (IPO) on its opening day of bidding on Thursday, April 30. The IPO, which will close on May 5, has received bids for 9,433,584 shares, even though 39,762,250 shares were available to buyers.

According to National Stock Exchange (NSE) data, the Qualified Institutional Buyers (QIBs) segment saw a subscription rate of 66%, while non-institutional investors accounted for 10% of bids. The Retail Individual Investors (RIIs) category lagged behind, with a subscription rate of just 6%.

OnEMI Technology Solutions Ltd had earlier announced that it has secured ₹278 crore from its anchor investors. The ₹926-crore public offering has been set at a price band of ₹162 to ₹171 per share, valuing the company at around ₹2,900 crore at the upper end of the range.

Read also: SMR Jewels IPO Successfully Lists with Institutional Support

IPO Details and Subscription Status

The minimum lot size for the IPO is 87 shares, requiring a minimum investment of ₹14,877 for retail investors at the higher price point. About 50% of the offering is designated for QIBs, 35% for retail investors, and the remaining 15% for non-institutional investors (NIIs).

Grey Market Premium and Listing Price

Read also: Zepto Nears $1 Billion Quarterly Net Order Value Milestone Before IPO

The grey market premium (GMP) for OnEMI Technology Solutions' IPO is currently at +4. Considering the upper end of the price band and the current premium, the estimated listing price of the company's share is ₹175 apiece, which is 2.34% higher than the IPO price of ₹171.

Analysts have noted that the grey market activity has shown an upward trend over the past nine sessions, indicating a strong listing for the company.

Analyst Views and Rating

Anand Rathi Research has assigned a "Subscribe – Long Term" rating to the IPO, citing the company's robust user base, reliable platform, and significant potential in India's underutilised credit sector. The research firm noted that the company has successfully expanded its digital loan distribution and is well-positioned to capitalise on future growth prospects.

Swastika Investmart has highlighted the company's impressive scale, with a customer base exceeding 6.3 crore and a remarkable Net Promoter Score of 91-95. However, the brokerage warned of significant risks associated with unsecured lending and pending legal issues, advising cautious evaluation.

Beacon Capital Advisors Pvt Ltd (Equivision) has noted that the company has focused on enhancing customer quality and fostering sustainable growth, despite a 20% revenue decline in FY25. The firm has also highlighted the company's asset quality, scalability, and AI-driven technology platform as significant advantages.

IPO Proceeds and Use of Funds

The proceeds from the new issue will be used to facilitate the capital expansion of its subsidiary, Si Creva, to meet forthcoming funding requirements, as well as for various corporate purposes. The lead managers for this issue are JM Financial, HSBC Securities and Capital Markets, Nuvama Wealth Management, SBI Capital Markets, and Centrum Broking, while KFin Technologies Ltd will act as the registrar.