OnEMI Technology Solutions IPO Day 1: Subscription Status & GMP Insights—Is It Worth Your Investment?

The initial public offering (IPO) of OnEMI Technology Solutions, priced between Rs 162 to Rs 171 per share, opened for subscription today, aiming to raise Rs 926 crore. The issue has had a slow start, with only a 2% subscription rate by 10:30 AM on Day 1. Retail investors subscribed to 2% of their portion, while non-institutional investors displayed relatively higher interest at 4%. Importantly, qualified institutional buyers have yet to engage with their allocated shares, suggesting a tentative market response. Despite the subdued initial interest, the IPO has garnered attention in the grey market, where it commands a premium of approximately 2.6% to 3%, reflecting mild yet cautious optimism among investors.

OnEMI Technology Solutions operates a digital lending platform called Kissht, effectively managing personal and business loans through a fully digital model. With a user base exceeding 6.3 crore, the company’s data-driven approach to underwriting provides broader credit access, particularly to underserved segments. Financially, OnEMI has shown mixed results, with revenues declining from Rs 1,700 crore in FY24 to about Rs 1,352 crore in FY25. However, profitability has improved, evidenced by a net profit increase to Rs 160.6 crore and a notable rise in EBITDA margins nearing 30%. The IPO proceeds will mainly bolster the capital base of its NBFC arm, aiding future growth, alongside allocations for general corporate purposes.

Investor sentiment remains cautious, with brokerages taking varying stances. While some analysts note the company’s scalable AI-driven platform and robust financial metrics, they caution about the inherent risks associated with unsecured lending—making up over 90% of its loan book. Regulatory changes in the digital lending landscape and the company’s dependency on customer growth further heighten these concerns. Analysts suggest that while the valuations appear reasonable, potential investors should approach the IPO judiciously due to the evolving market conditions and inherent business risks. As such, the recommendation leans towards waiting for clearer visibility in the company’s growth trajectory before making investment decisions.

Source: The Economic Times

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