OnEMI Technology Set to Launch IPO Amid Positive GMP: Key Details on Price Band, Subscription, and Expert Review Inside!

The IPO of OnEMI Technology Solutions is set to open for subscription on April 30, attracting interest from investors keen on participating in this tech-driven lending initiative. Priced between Rs 162 and Rs 171 per share, the IPO aims to raise approximately Rs 926 crore, comprising a fresh issue of Rs 850 crore alongside an offer for sale of Rs 76 crore. The subscription period will close on May 5, with the listing anticipated in early May. Notably, the grey market premium is hovering around 3%, suggesting a cautious yet optimistic sentiment from investors ahead of the listing.

OnEMI, known for its consumer lending platform Kissht, operates a fully digital lending model that encompasses the complete loan lifecycle—from onboarding to collections. Despite the company boasting a robust user base of over 6.3 crore and an enhanced customer engagement profile, its financial performance has shown mixed results. Revenue in FY25 dropped to Rs 1,352 crore from Rs 1,700 crore the previous year, although profit increased to Rs 160.6 crore, driven by improved EBITDA margins rising to nearly 30%. The IPO proceeds aim to bolster the capital base of its NBFC subsidiary, Si Creva, facilitating loan growth amidst a landscape of unstable macroeconomic conditions.

Given the inherent risks associated with the business model—particularly a reliance on unsecured loans, which constitute over 90% of its loan book—investor caution is warranted. Brokerages, such as Swastika Investmart, have assigned a “neutral” rating, underscoring the attractive valuations in relation to larger peers like Bajaj Finance and SBI Cards. However, they also highlight significant risks tied to regulatory changes and customer retention. As such, potential investors may want to approach this IPO carefully, assessing the sustainability of OnEMI’s growth trajectory and the credit risks intrinsic to its operations.

Source: The Economic Times

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