OnEMI Technology Solutions IPO Day 3: GMP Dips Below 1% Amid 60% Overall Subscription Rate.

The IPO of OnEMI Technology Solutions, aiming to raise Rs 926 crore, has entered its third day of bidding, with a price band set between Rs 162 and Rs 171 per share. By the conclusion of Day 2, the offering was subscribed at approximately 60% of the total 3.97 crore shares, with retail investors participating at just 16% of their quota. The non-institutional investors displayed better engagement, covering 50% of their share allocation, while the qualified institutional buyers drove the demand, achieving bids of 1.45 times their allotment. The subscription period is open until May 5, with an anticipated listing in early May.

In the grey market, the IPO is currently trading at a muted premium of around Rs 1.5 per share over the upper price band of Rs 171, suggesting a tentative listing price of approximately Rs 172. This limited grey market premium indicates subdued investor sentiment towards the offering, reflecting concerns around the company’s mixed financial performance and heavy reliance on unsecured lending. The cautious sentiment among investors may also stem from the regulatory uncertainties pervasive in the digital lending sector and the potential risks associated with credit exposure.

For Indian investors, the mixed outlook on the OnEMI Technology IPO presents a critical decision-making juncture. While the company showcases a scalable platform with impressive asset quality, the ongoing reliance on unsecured loans increases exposure to credit risk, particularly given the volatile economic landscape. Analysts recommend a cautious approach, suggesting investors wait for more concrete indicators of sustainable growth before committing. Valuations appear reasonable compared to peers, but the identified risks emphasize the importance of thorough evaluation prior to investment.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)