OnEMI Technology
IPO Size: Rs. 926 cr
- Fresh Issue of Rs. 850 cr for capital towards lending business
- Offer for Sale (OFS) of Rs. 76 cr, by THE 6 investors (50% combined stake to drop to 36% post IPO)
Price band: Rs. 162-171 per share
M cap: Rs. 2,881 cr, implying 32% dilution
IPO Date: Thu 30th Apr to Tue 5th May 2026, Listing Fri 8th May 2026
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
Personal Loan Provider to Young Indians
OnEMI Technology Solutions, is a 10-year old company operating under brand name Kissht, disbursing quick digital personal loans of Rs. 25,500 average ticket size to 29 lakh borrowers, for their business and consumption needs. Assets under management (AUM) stood at Rs. 5,956 cr, of which, Rs. 2,900 cr AUM is off-books i.e. sourced for partners on which fees are earned. 94% of company’s loans is unsecured personal loan and balance 6% secured as loan against property.
Lending Rate higher than Micro-finance
Company charges high interest rate of over 30% on its loans, as all of it is unsecured. This looks unsustainable in the long term or on a high base.
On net worth of Rs. 1,250 cr, as of 31.12.25, borrowing stand at Rs. 2,000 cr, rated A-, implying 1.6x leverage. With Rs. 850 cr IPO fund raise, company will be able to disburse Rs. 2,200 cr additional, at 1.6x debt equity ratio. Thus, growth visibility exists, but the quality of growth is not comforting. Company’s own cost of borrowing is also high at ~15%, leading to a net interest margin (NIM) of 21%.
Provisions Bite into High Margins
9MFY26 net interest income (NII) of Rs. 1,352 cr surpassed FY25’s NII of Rs.1,170 cr. PAT also jumped to Rs. 199 cr, from Rs. 161 cr in FY25, leading to an EPS of Rs. 15.
For unsecured loans, net NPA of 0.38% is good, although it has been sharply rising, from 0.25%, as of 31.3.25, despite secured loan against property started a year ago.
The biggest negative in the financials is abnormally high credit cost of 9%, as write-offs are huge. On Rs. 350 cr impairment in 9MFY26, Rs. 295 cr was write-off and Rs. 50 cr expected loss provisioning. Impairment exceeds company’s Profit before tax and is expected to remain elevated. This leads to ‘NIM less credit cost’ to ~6%, which is at par with most of the other NBFCs.
Inline Pricing
M cap of Rs. 2,881 cr implies a post money price-to-book value (PBV) multiple of 1.4x and a PBV of 1.2x on FY27E basis.
Company has raised about Rs. 550 cr in equity till date, with NIM and growth (on a low base) look attractive. But underwriting is not very comforting, which will be tested further during difficult times. Besides, interest rate environment is not favourable, with no further rate cuts likely in FY27E, and may rise in H2, based on macros developments.
Previous Transactions
Allotment of 0.4% equity to Sachin Tendulkar at Rs. 223 per share in Feb 2025 must not be considered ‘fair’ value, as it is a pseudo marketing deal.
Few part-selling investors have done Rs. 40 cr secondary sale to the promoters on 6th Mar 2026 at Rs. 201 per share. This also cannot be taken as benchmark, as both are interested parties.
Besides, there may be selling pressure post listing, after expiry of 6 month lock-in, as some of the financial investors are holding stake in the company for nearly 9 years now.
