OnEMI Technology Solutions IPO Update: Subscription Reaches 60% on Day Three

OnEMI Technology Solutions IPO Sees 60% Subscription on Second Day

The initial public offering (IPO) of OnEMI Technology Solutions Ltd, the parent company of digital lending platform Kissht, has seen a 60% subscription on the second day of bidding. According to data from the Bombay Stock Exchange (BSE), the issue received bids for 2,38,94,028 shares against the 3,97,62,250 shares on offer.

The Qualified Institutional Buyers (QIBs) segment was subscribed to 1.45 times, while the non-institutional investor portion saw a 50% subscription rate. However, the Retail Individual Investors (RIIs) category lagged, with a 16% subscription rate. The IPO, which is set to close on May 5, has a price band of ₹162–171 per share, valuing the company at around ₹2,900 crore at the upper end.

The smallest lot size is 87 shares, which necessitates a minimum investment of ₹14,877 for retail investors at the upper price level. Approximately half of the offering is allocated to qualified institutional buyers (QIBs), 35% to retail investors, and the remaining 15% to non-institutional investors (NIIs).

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IPO Details and Subscription Status

The company had earlier raised ₹278 crore from anchor investors. The total issue size is ₹926 crore, with ₹850 crore coming from a new issuance of equity shares and ₹76 crore from an offer-for-sale (OFS) of equity shares from current shareholders.

Grey Market Premium and Listing Price

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OnEMI Technology Solutions IPO GMP is currently at +1.5. Considering the upper end of the price band and the current premium in the grey market, the estimated listing price of the share is indicated at ₹172.5 apiece, which is 0.88% higher than the IPO price of ₹171. According to recent grey-market trends, the current GMP suggests a downward trend.

Brokerage Views on the IPO

Brokerages have offered a mixed but largely constructive view on the IPO of OnEMI Technology Solutions Ltd. Anand Rathi Research has assigned a "Subscribe – Long Term" rating, citing the company's successful scaling of its digital lending platform and strong growth potential in India's underpenetrated credit market. Swastika Investmart has described the valuation as attractive, while highlighting the company's large customer base and high Net Promoter Score. However, it flagged risks from high unsecured loans and potential regulatory tightening. Beacon Capital Advisors Pvt Ltd (Equivision) has pointed out the company's stable asset quality metrics and scalable technology platform as key strengths supporting long-term growth.

IPO Details

The primary managers for this issuance include JM Financial, HSBC Securities and Capital Markets, Nuvama Wealth Management, SBI Capital Markets, and Centrum Broking, with KFin Technologies Ltd serving as the registrar. The funds generated from the new issuance will be utilized to support the capital growth of its subsidiary, Si Creva, in order to address upcoming financial needs, along with other corporate purposes.