Fairly Priced or Overvalued? Decoding the OnEMI Technology IPO

OnEMI Technology Solutions Limited is a leading Indian fintech company that provides fast and easy digital loans. Founded in 2016, the company has quickly become a well-known name in the lending space through its two popular consumer apps — Kissht and Ring.

What Does OnEMI Do?

Kissht: Offers personal loans and business loans to individuals and small businesses.
Ring: Focuses on small-ticket credit and merchant payment solutions, making daily transactions smoother for shopkeepers and small merchants.

The company’s main focus is serving the underserved young Indian population — people who often find it difficult to get quick loans from traditional banks.

Key Highlights (as of December 2025)

Registered Users: Approximately 63.73 million
Target Customers: Young, tech-savvy Indians
Average Age of Customers: 32 years
Median CIBIL Score: 746 (which shows that most customers have a good credit history)

OnEMI has built a strong position by making borrowing simple, fast, and completely digital. Customers can apply for loans through their mobile apps in just a few minutes, without heavy paperwork.

By focusing on this young and growing middle-class segment, OnEMI is riding the wave of India’s increasing demand for convenient credit solutions.

OnEMI Technology IPO Details

The IPO is a main-board issue structured to provide growth capital while offering a partial exit to early investors.

Detail	Information
IPO Dates	April 30 – May 5, 2026
Price Band	₹162 to ₹171 per share
Lot Size	87 Shares (Minimum ₹14,877)
Total Issue Size	₹925.92 Crore
Face Value	₹1 per share
Allotment Date	May 6, 2026
Listing Date	May 8, 2026 (BSE & NSE)

Issue Structure and Objectives

The IPO consists of two main parts – a Fresh Issue and an Offer for Sale (OFS). This means the company will raise new money for growth, while some existing investors will also sell a portion of their holdings.

Fresh Issue – ₹850 Crore

This is the most important part of the IPO because the money raised from the fresh issue will go directly to the company. These funds will be used to support future expansion, strengthen operations, and improve overall business performance.

Offer for Sale (OFS) – ₹75.92 Crore

In the OFS portion, existing shareholders and early investors will sell some of their shares to the public. The company does not receive this money, as it goes to the selling shareholders.

Main Objectives of the IPO

1. Capital Infusion into NBFC Subsidiary

Around ₹637.5 Crore will be invested into the company’s NBFC subsidiary, Si Creva Capital Services. This amount will help increase its lending capacity, allowing the company to give more loans and expand its customer base.

2. Technology and Digital Infrastructure

A portion of the funds will be used to improve technology systems, especially AI and Machine Learning-based underwriting models. These tools help the company assess borrower risk faster, approve loans efficiently, and reduce defaults.

3. General Corporate Purposes

The remaining amount will be used for regular business needs such as operational expenses, brand growth, working capital, and future strategic opportunities.

Financial Performance

Unlike many fintech startups that list while in the red, OnEMI has demonstrated a track record of profitability.

Metric	FY25 (Full Year)	9M FY26 (Apr–Dec)
Total Revenue	₹1,352 Crore	₹1,583 Crore
Profit After Tax (PAT)	₹161 Crore	₹199 Crore
AUM (Assets Under Mgt)	~₹4,086 Crore	~₹5,956 Crore
Net NPA	0.25%	0.38%

Note: The company maintains a high Net Interest Margin (NIM) of ~21%, though its cost of borrowing is also relatively high at ~15%.

Why Investors Are Excited

Many investors are showing strong interest in this IPO because the company operates in a fast-growing fintech sector and has several positive factors working in its favor.

1. Scalable Business Model

The company follows a digital-first business model, which means it mainly operates through online platforms instead of physical branches. This helps reduce costs such as rent, staff, and infrastructure expenses. It also allows the company to acquire new customers quickly across different cities and states.

2. Strong Profitability

Unlike many fintech companies that are still struggling with losses, OnEMI has reported a Profit After Tax (PAT) of nearly ₹200 Crore in the first nine months of FY26. This gives the company a stronger image in the market and may support better valuation compared to loss-making competitors.

3. Huge Growth Opportunity

India’s consumer credit market is still under-penetrated, especially in the segment of small-ticket loans, EMI financing, and Buy Now Pay Later (BNPL) services. As more people prefer instant digital credit options, the company has a large market to grow in.

4. Strong Investor Support

The company is backed by well-known investors such as Vertex, which adds confidence for many market participants. It has also gained visibility in the past through marketing partnerships with famous personalities like Sachin Tendulkar, helping improve brand recognition.

OnEMI Technology IPO GMP (Grey Market Premium)

As of early May 2026, the sentiment in the grey market appears cautious but slightly positive. This means investors are interested in the IPO, but expectations for a huge listing gain are currently limited.

1. Current GMP – Around ₹4 Per Share

The Grey Market Premium (GMP) is approximately ₹4 per share. GMP refers to the unofficial premium at which IPO shares are traded in the unlisted market before listing on the stock exchange.

2. Estimated Listing Price – Around ₹175

Based on the upper price band of ₹171 and a GMP of ₹4, the estimated listing price is around ₹175 per share.

3. Expected Listing Gain – Around 2.5%

If the stock lists near the expected level, investors may see a listing gain of nearly 2.5% over the issue price.

What Market Sentiment Suggests

The current GMP is modest, which indicates that the market believes the IPO is fairly priced rather than heavily discounted. In simple words, traders are not expecting a massive first-day jump, but they do see reasonable value in the company.

Positive Sign for Long-Term Investors

A lower GMP is not always negative. Sometimes it means the IPO valuation is balanced, leaving more room for steady long-term growth instead of a short-term listing spike followed by profit booking.

Risks Involved

High Unsecured Exposure: Nearly 94% of the loan book is unsecured personal loans, making it highly sensitive to economic downturns.
High Credit Costs: The company incurs significant impairment costs (~9%), which eats into its high interest income.
Regulatory Environment: Digital lending is under constant scrutiny from the RBI regarding collection practices and data privacy.
Customer Mix Shift: The share of repeat customers has dropped from 87% (FY23) to ~50% (FY26), indicating a reliance on expensive new customer acquisition.

Final Thoughts

The OnEMI (Kissht) IPO can be seen as a play on the growing financialization of India’s young population, where more young consumers are using digital credit, EMI purchases, and instant loan services for their daily needs and lifestyle spending.

The company appears to be reasonably priced, with an estimated P/E ratio of around 10–11x based on annualized FY26 earnings. This is lower than the broader industry average of nearly 31x, which may make the valuation attractive for investors looking at growth opportunities.

However, investors should also understand the risks involved. The company mainly operates in the unsecured lending segment, where loans are given without physical collateral. This business can deliver strong growth, but it also carries higher risks such as loan defaults, rising credit costs, and pressure during economic slowdowns.