OnEMI Technology Solutions IPO Review | APPLY or AVOID?
OnEMI Technology Solutions Private Limited started in 2016. It operates in the Banking and Finance – FinTech industry and provides digital loans to its customers across India. This business is based in Mumbai. This IPO review covers the main facts of the offer. It helps you decide if the issue fits your portfolio.
OnEMI Technology Solutions Ltd. (OTSL) shows Steady growth, but the high proportion of unsecured loans remains a key point to consider for investors. The company provides essential digital lending services, but investors must look closely at the risks related to unsecured loan concentration.
IPO Details | |
|---|---|
| Issue Type | Book Building |
| IPO Category | Mainboard |
| Face Value | ₹1 Per Share |
| Fresh Issue | ₹850 Cr |
| Offer for Sale | ₹76 Cr |
| Listing At | SME |
Reservation & Lot Size | |
|---|---|
| Retail (Min) | 1 Lot | 87 Shares | ₹2,35,200 |
| Retail (Max) | 13 Lot | 1,131 Shares | ₹1,93,401 |
| S-HNI (Min) | 14 Lot | 1,218 Shares | ₹2,08,278 |
| S-HNI (Max)| 67 Lot | 5,829 Shares | ₹9,96,759 |
| B-HNI (Min) | 68 Lot | 5,916Shares | ₹10,11,636 |
✅ Strengths
⚠️ Challenges
Financial Update
The company released its restated financial statements for the year ending March 31, 2025. Total revenue was ₹1,352.69 crore, a decrease from ₹1,700.30 crore in the previous year. The net profit for the same period was ₹160.62 crore, decreased from ₹197.29 crore in the previous year. Assets increased by 50.35% compared to the previous year. This trend should be carefully studied prior to any investment.
IPO Valuation
The upper price band is ₹171. This price leads to a Price-to-Earnings (P/E) ratio of 10.84 based on annualized FY26 earnings. The average P/E for the industry is –. The valuation appears fully priced considering the decline in FY25 results. However, the annualized FY26 earnings make the P/E look attractive compared to peers. Investors should consider the company’s inconsistent profit margins and high proportion of unsecured loans while evaluating this valuation.
IPO Objective
The company will use the proceeds of the offer to meet stated objectives:
- ₹637.50 crores for augmenting the capital base of its Subsidiary, Si Creva, to meet its future capital requirements arising out of the growth of Si Creva’s business.
- The remaining amount will be used for General Corporate Purposes.
Promoters & Lead Manager
Peer Comparison
Below is the comparison of the company with its listed peers using data from April 27, 2026. The company’s business model is mainly digital lending with a high share of unsecured loans, making a true apple-to-apple comparison with the listed, more diversified peers difficult.
| Company | EPS (Basic) | EPS (Diluted) | NAV (₹ per share) | P/E (x) | RoNW (%) | Financial statements |
|---|---|---|---|---|---|---|
| Sbi Cards And Payment Services Limited | 20.15 | 20.14 | 144.86 | 39.61 | 14.82% | – |
| Hdb Financial Services Limited | 27.4 | 27.32 | 198.8 | 27.26 | 14.72% | – |
| Cholamandalam Investment And Finance Company Limited | 50.72 | 50.6 | 281.45 | 29.31 | 19.71% | Consolidated |
| Bajaj Finance Limited | 26.89 | 26.82 | 155.6 | 32.73 | 19.19% | Consolidated |
| OnEMI Technology Solutions LTD | 33.09 | 12.79 | 187.58 | – | 17.74% | – |
Financial data sourced from annual reports and stock exchange data, using restated financial statements for 2024-25. NAV per share (closing net worth divided by weighted average number of paid-up equity shares) and RoNW (net profit after tax divided by closing net worth).
IPO Review & Analyst Rating
OnEMI Technology Solutions Ltd. (OTSL) is a pioneer in the digital loan space in India through its mobile apps like ‘Kissht’. The company has shown significant top and bottom-line growth, with the exception of FY25, where it reported a decline. The management claims it could be the first listed entity to focus on the digital loan business. A major concern for investors is that about 94% of its lending is unsecured. Additionally, the huge contingent liabilities of over ₹1793.49 crore as of December 31, 2025, raise a red flag. The issue is fully priced based on its financial performance in the past. Investors with a high-risk appetite and surplus cash may consider investing in the high-growth potential of the digital lending sector.
| Analyst Name | Recommendation |
|---|---|
| SBICAP Securities | Cautiously Positive |
| Univest | Cautiously Positive |
| Swastika Investmart | Neutral |
| Kotak Neo | Monitor |
Disclaimer: The information on the site is informational only. The contents of this blog are not financial advice. You should not invest in any stock market instrument without consulting your Financial advisor.
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