OnEMI Technology IPO Day 2: Subscription Remains Muted at 34%, GMP Signals Caution

The initial public offering (IPO) of OnEMI Technology, which operates the digital lending platform Kissht, is witnessing a subdued response from investors as it enters the final phase of bidding.

Weak Retail Interest, Low Grey Market Premium Reflect Lukewarm Investor Sentiment

The initial public offering (IPO) of OnEMI Technology, which operates the digital lending platform Kissht, is witnessing a subdued response from investors as it enters the final phase of bidding. As of Day 2, the issue has been subscribed only 34%, indicating cautious participation across investor categories.

Subscription Status: Retail Participation Lags

According to data from the National Stock Exchange of India, the IPO has received bids for 13.48 million shares against 39.76 million shares on offer.

Segment-wise subscription trends show a mixed picture:

Qualified Institutional Buyers (QIBs): ~81% subscribed
Non-Institutional Investors (NIIs): ~23% subscribed
Retail Investors: ~12% subscribed

The relatively stronger interest from institutional investors contrasts sharply with weak retail demand, which is often a key driver of oversubscription in IPOs.

Grey Market Premium (GMP) Remains Low

Investor caution is also reflected in the grey market activity. OnEMI’s unlisted shares are trading at around ₹174.75, indicating a grey market premium (GMP) of just ₹3.75, or approximately 2.2% over the upper price band of ₹171.

A low GMP typically signals limited listing gains and subdued investor enthusiasm, especially compared to high-demand IPOs that often command double-digit premiums.

IPO Structure and Key Details

The IPO comprises both fresh issuance and an offer for sale (OFS):

Fresh Issue: ₹850 crore (49.7 million shares)
Offer for Sale (OFS): ₹75.92 crore (4.4 million shares)

Key investors such as Vertex Growth Fund, Ventureast funds, and other institutional stakeholders are partially exiting through the OFS component.

Price Band: ₹162–₹171 per share
Lot Size: 87 shares
Minimum Investment: ₹14,877
Maximum Retail Investment: ₹1.93 lakh (13 lots)

Timeline: What Happens Next

IPO Closing Date: May 5, 2026
Allotment Finalisation: May 6, 2026
Demat Credit: May 7, 2026
Listing Date (Tentative): May 8, 2026

The shares will be listed on both the NSE and BSE.

Use of Proceeds

According to the company’s red herring prospectus, the proceeds from the fresh issue will primarily be used to strengthen the capital base of its subsidiary, Si Creva.

₹637 crore: Capital augmentation
Remaining Funds: General corporate purposes

This indicates a focus on scaling lending operations and supporting future growth.

Why Investor Interest Is Tepid

Several factors appear to be weighing on investor sentiment:

Moderate growth visibility in the fintech lending space
Competitive pressure from established NBFCs and banks
Concerns around asset quality and credit risk
Valuation sensitivity amid broader market conditions

Additionally, the absence of strong grey market signals has further dampened enthusiasm.

Market Perspective: IPO Environment Turning Selective

The muted response to OnEMI’s IPO highlights a broader trend—investors are becoming more selective, favoring companies with strong profitability, clear growth visibility, and robust balance sheets.

While fintech remains a high-potential sector, market participants are now focusing more on fundamentals rather than just growth narratives.

Investment Outlook

With subscription still below full levels heading into the final day, the IPO’s success will largely depend on last-day institutional participation.

For investors, key considerations include:

Final subscription numbers, especially QIB participation
Listing-day sentiment and broader market conditions
Long-term growth potential of digital lending platforms