IPO closes on 5 May'26
OnEMI Technology Solutions Ltd
Minimum Investment
₹ 14,877 / 87 shares
Our Verdict:
Avoid
- OnEMI Technology Solutions Ltd (OTSL) has demonstrated strong revenue and earnings CAGR over the past three years. However, the growth trajectory has been inconsistent. While FY25 saw a dip and 9M-FY26 indicates recovery, the lack of sustained performance limits conviction at this stage.
- From a valuation standpoint, the IPO is priced at a discount to listed peers, making it appear attractive on the surface.
- That said, the business model carries inherent risks. Although the company benefits from customised underwriting for underserved borrowers, efficient collections and quick turnaround times, it remains exposed to key risks outlined in the “Risk Factors” section.
- In particular, the company’s high exposure to unsecured lending and evolving regulatory landscape add layers of uncertainty. While valuations may be reasonable relative to peers, these risks warrant a cautious stance.
- Given these factors, it may be prudent to wait and track the company’s performance over the next couple of quarters before considering any investment exposure.
About the company
Founded in
18 Jun'16
Managing director
Ranvir Singh
- OTSL provides personal loans and, more recently, loans against property (LAP), addressing both consumption and business-related financing needs. It operates through its digital platform, Kissht, which manages the entire loan lifecycle — from customer acquisition and onboarding to credit assessment, disbursal, and collections.
- The company’s revenue model is driven by interest income from loans held on its own books, along with income generated through partnerships with lending institutions.
STRENGTHS
- Robust AUM Growth: Assets Under Management have expanded at a strong CAGR of 80% over FY23–FY25, reaching ₹5,955.75 crore as of December 31, 2026, indicating rapid scale-up of the lending book.
- Financial Performance: OTSL has delivered healthy financial growth, with revenue increasing at a CAGR of 12% and net profit growing at a sharp CAGR of 141% between FY23 and FY25.
- High RoA: For 9M FY26, OTSL reported a Return on Assets of 8.5%, placing it among the higher end of its peer set, including Cholamandalam Investment, HDB Financial and SBI Cards.
- Expanding Customer Base: As of December 31, 2025, OTSL had 6.37 crore registered users (up from 3.14 crore in FY23) and served 1.12 crore customers (up from 0.64 crore in FY23). In 9M FY26, its ecosystem included 52,396 active merchants, supporting credit QR-led customer acquisition and distribution.
RISK FACTORS
- High Exposure to Unsecured Lending: The business model carries inherent risk due to its predominantly unsecured loan book, which constituted ~94% of AUM as of Dec ’25 and ~98% as of Mar ’25. While the company has initiated diversification into secured lending through LAP, the segment remains too small to meaningfully reduce overall portfolio risk.
- Deteriorating Asset Quality: Asset quality has weakened significantly, with Gross NPA rising from 0.05% in FY23 to 2.90% by 9M FY26. Net NPA has also increased to 0.38% (from 0.25% in FY25), indicating rising stress in the loan book.
- Cash Flow Concerns: OTSL and its subsidiary have reported negative operating cash flows over the past two fiscal years as well as in 9M FY26. Sustained negative cash flows could impact business operations, profitability and overall financial stability.
- High Contingent Liabilities: OTSL carries significant contingent liabilities, including corporate guarantees, tax matters under appeal and guarantees under business correspondent arrangements. As of December 31, 2025, these stood at ₹1,793 crore, notably high relative to its net worth of ₹1,254 crore.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 926 crore
Fresh Issue
₹ 850 crore
OFS
₹ 76 crore
Price range
₹ 162 - 171
Lot size
87 shares
Issue Objective
The net proceeds from the fresh issue are proposed to be utilised for the following purposes:
- Augmenting the capital base of the subsidiary, Si Creva, to support its future growth and capital requirements; and
- General corporate purposes.
Dates
Bidding open
30 Apr'26
Bidding close
5 May'26
Allotment date
6 May'26
Refund date
7 May'26
Listing
8 May'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.