OnEMI Technology Solutions IPO Day 2: Achieves 27% Subscription Rate with a Grey Market Premium of 2% Amid Key Updates.
The Rs 926 crore IPO of OnEMI Technology Solutions has garnered a subscription rate of 27% by the second day of bidding, indicating a favorable beginning in the capital market despite significant challenges. The total issue size encompasses 3.97 crore shares, with retail investors subscribing to 9% of their allotted shares and non-institutional investors (NIIs) demonstrating slightly higher participation at 19%. Notably, qualified institutional buyers (QIBs) exhibited strong interest, bidding for 66% of their allocation. Current market sentiment, reflected in a grey market premium of around 2%, suggests that investors are cautiously optimistic about the IPO’s prospects.
OnEMI Technology Solutions, known for its digital lending platform Kissht, reported mixed financial performance. While revenue saw a decline from Rs 1,700 crore in FY24 to approximately Rs 1,352 crore in FY25, improvements in profitability were noteworthy, with net profit touching Rs 160.6 crore and EBITDA margins strengthening significantly to nearly 30%. The funds raised through the IPO will primarily enhance the capital base of its NBFC subsidiary, Si Creva, supporting future loan expansions and operational stability. Valuations at the upper price band of Rs 171 position the company relatively favorably against larger players like Bajaj Finance, yet it remains to be seen how it mitigates the risks associated with its high exposure to unsecured lending.
Market analysts have adopted a mixed but cautious stance regarding the IPO. While some brokerages, such as Swastika Investmart, recommend a “neutral” rating due to fair valuations, they highlight concerns surrounding high unsecured lending risk and inconsistent financial trends. Others, like SBICAP Securities Research, point to robust financial indicators, including significant growth in net interest income and asset quality metrics. Despite a favorable growth outlook, significant risks remain due to dependency on credit markets and evolving regulatory landscapes, suggesting that potential investors should consider a careful assessment before making subscription decisions.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)