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Anand Rathi Report
Kissht parent OnEMI Technology Solutions launched its initial public offering today, April 30 and the offer closes for subscription on May 5.
The digital lending platform Kissht has fixed the price band in the range of Rs 162 to Rs 171 per equity share.
Investors can place bids starting from a minimum of 87 shares and in multiples thereafter.
The Rs 926 crore IPO comprises a fresh issue of Rs 850 crore and an offer-for-sale component worth Rs 76 crore.
JM Financial Ltd., HSBC Securities and Capital Markets (India) Private Ltd., Nuvama Wealth Management Ltd., SBI Capital Markets Ltd., Centrum Broking Ltd. are the book-running lead managers for the public issue while KFin Tech is the registrar to the offer.
The shares of OnEMI Technology will be listed on both the National Stock Exchange and the BSE on May 8.
Objects of the Issue:
- Augmenting the capital base of their Subsidiary, Si Creva, to meet its future capital requirements arising out of the growth of their Subsidiary, Si Creva's, business; and
- General corporate purposes.
Key Strengths:
- Large customer base acquired through a diversified multi-channel acquisition strategy.
- Driving asset quality through advanced and comprehensive risk management.
- Access to diversified and scalable funding sources
- Scalable, cloud-native and AI-built technology platform integrated across all key functions.
Key Risk:
- A significant portion of their AUM consists of unsecured loans (94.2% and 98.2% of their total AUM as of December 31, 2025, and March 31, 2025, respectively). Any decrease in demand for their unsecured loan products may adversely affect their business, financial condition, cash flows, results of operations and prospects.
- Their success depends on retaining and expanding their customer base. If they do not continue to innovate and further develop their platform or their platform developments do not perform, or they are not able to keep pace with technological developments or if they are unable to attract new customers or are unable to retain and grow their relationships with their existing customers, their business, financial condition, cash flows, results of operations and prospects would be materially and adversely affected.
- They and their Subsidiary have witnessed negative operating cash flows in the past. Net cash inflow/(outflow) of their Company and their Subsidiary was Rs (1,377.6) million and Rs (2,294.2) million, respectively, in the nine months ended December 31, 2025, and Rs (6,614.3) million and Rs (8,249.9) million, respectively, in Fiscal 2025.
- They have certain contingent liabilities that have not been provided for in their Restated Consolidated Financial Information, which, if they materialize, may adversely affect their financial condition.
- A significant portion of their AUM is attributable to the southern and western regions of India (35.0% and 26.5%, respectively, of their AUM in the nine months ended December 31, 2025, and 32.9% and 29.1%, respectively, of their AUM in Fiscal 2025). Any adverse development in these regions may adversely affect their business, financial condition, cash flow and results of operations.
- Their inability to use software licensed from third parties could adversely affect their ability to sell their offerings and subject them to possible litigation, which may adversely affect their business, financial condition, cash flow, results of operations and prospects.
- They depend on their Subsidiary, Si Creva, for their on-book loans. Any disruption in its business could materially and adversely impact their business, financial condition, results of operations and cash flows.
- They have, in the past, allotted Series A OCRPS and Series B OCRPS to their Promoters, which were subsequently converted to Equity Shares of the Company in the conversion ratio of 1:1,457,280.
- If they are unable to control the level of GNPAs in their portfolio effectively (their Gross NPA was 2.90% and 2.89% as of December 31, 2025 and March 31, 2025, respectively) or if they are unable to maintain adequate provisioning coverage (their provisioning coverage ratio was 86.9% and 91.5% in the nine months ended December 31, 2025 and Fiscal 2025, respectively) or if there is any change in regulatory-mandated provisioning requirements, their business, financial condition, cash flows, results of operations and prospects could be adversely affected.
- They rely on collecting and analyzing data to enhance their business performance and results and depend on the accuracy and completeness of information provided by their customers. Their reliance on any misleading information may affect their judgment of their credit worthiness, as well as the value of and title to the collateral. Further, any inability to accumulate or access sufficient data in the future or analyze the data effectively may adversely affect their business, financial condition, cash flows, results of operations and prospects.
Valuation:
Kissht is a digital lending platform operated by OnEMI Technology Solutions Pvt. Ltd., focused on providing instant personal loans and Buy Now, Pay Later (BNPL) solutions in India.
At the upper price band, the company is valued at 1.4x FY25 P/B, implying a post-issue market capitalization of Rs 2,881 crore. Approximately 94% of its loan books are unsecured, reflecting a higher-risk lending profile. With evolving consumer lifestyles, the company has successfully scaled its digital loan distribution and is well-positioned to benefit from future growth opportunities.
It has built a user base of 53 million, supported by a proven platform and significant headroom in India's underpenetrated credit market.
Considering these factors, the IPO appears fairly valued and is recommended as “Subscribe – Long Term.”
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ALSO READ: Kissht Parent OnEMI Technology IPO GMP Indicates Modest Listing Pop Ahead Of April 30 Debut
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