OnEMI Technology Solutions IPO subscribed 29% on Day 2, with QIBs leading demand at 66%
₹926 crore issue backed by ₹278 crore anchor investment; retail participation remains muted
Grey market premium of 2–4% signals cautious optimism ahead of closing on May 5
OnEMI Tech IPO Sees Tepid Demand, Subscribed 29% on Day 2
₹926 crore issue sees steady traction with anchor backing of ₹278 crore; GMP signals cautious optimism ahead of IPO close on May 5
Summary
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The ₹926 crore initial public offering (IPO) of OnEMI Technology Solutions (Kissht) was subscribed 29% on the second day of bidding, indicating moderate investor interest so far.
The issue, which opened on Thursday, has received bids for 29% of its total 3.97 crore shares on offer. The IPO will close on May 5, with listing expected shortly thereafter.
Qualified institutional buyers (QIBs) led the demand, subscribing to 66% of their allocated 1.13 crore shares. Non-institutional investors (NIIs) bid for 20% of their quota of 85.36 lakh shares, while retail investors subscribed to 11% of their reserved portion of 1.99 crore shares.
The IPO has also seen participation from anchor investors, with the company raising ₹278 crore ahead of the public issue.
Issue Details and Valuation
The IPO is priced in the range of ₹162 to ₹171 per share, valuing the company at around ₹2,900 crore at the upper end of the price band. The issue comprises a fresh issue of ₹850 crore and an offer for sale (OFS) worth ₹76 crore by existing shareholders.
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At the upper end of the price band, the minimum lot size of 87 shares requires a retail investment of ₹14,877. The allocation structure earmarks 50% for QIBs, 35% for retail investors and 15% for NIIs.
The offer includes stake sales by several investors, including Ammar Sdn Bhd Investor, Vertex Ventures SEA Fund III, Vertex Growth Fund entities, Ventureast Proactive Fund entities, Endiya Seed Co-creation Fund and others.
The IPO is currently commanding a modest grey market premium (GMP) of around 2–4%, suggesting cautious but positive sentiment. Based on the upper price band, the estimated listing price stands near ₹175, indicating a limited upside of about 2–3%.
Proceeds from the fresh issue will be used primarily to fund capital expansion in its subsidiary, Si Creva, along with general corporate purposes.
The issue is being managed by JM Financial, HSBC Securities and Capital Markets, Nuvama Wealth Management, SBI Capital Markets and Centrum Broking, while KFin Technologies is acting as the registrar.
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