Brokerages Weigh In On OnEMI Technology IPO: Should You Apply?

OnEMI Technology (operating as “Kissht” and “Ring”) is aiming to capture the lion’s share of the emerging “mass market.” As the company hits the primary market with an INR 926 crore IPO, the Dalal Street consensus is largely bullish, though not without caveats.

Led by former McKinsey executives Ranvir Singh and Krishnan Vishwanathan, and backed by Vertex Growth Fund, the company has scaled its Assets Under Management (AUM) to INR 5,956 crore (as of Dec 2025). But what exactly is driving the brokerage houses to recommend this issue? Here is a granular breakdown of the OnEMI Technology IPO research notes.

Key Highlights from the OnEMI Technology IPO Research Notes

1. The Business Model: Mastering the “Mass Market”

Unlike traditional banks that focus on prime borrowers, OnEMI targets the highly underpenetrated mass-market segment.

The Target Customer: The average Kissht borrower is 32 years old, with 67.6% earning between INR 25,000 and INR 75,000 per month. Interestingly, the median CIBIL score is a healthy 746, proving that this is not a sub-prime portfolio.
The “Credit QR” Moat: As highlighted by BP Equities and Adroit, Kissht operates an innovative Offline-to-Online (O2O) model with “Credit QR” codes deployed across 52,396 active merchant outlets. This allows a customer to scan at a physical store and instantly access credit.
The Hybrid Book: To conserve capital, OnEMI uses a balanced liability profile. 51.1% of the AUM sits “On-book” via its RBI-registered subsidiary, Si Creva, while 48.9% is “Off-book,” funded by a network of 47 lending partners through co-lending, direct assignments, and 100-0 models.

2. The Strategic Pivot: Enter Secured Lending (LAP)

A key positive highlighted by Anand Rathi and BP Equities is the company’s recent entry into secured lending. To de-risk its 94% unsecured personal loan portfolio, OnEMI launched Loans Against Property (LAP) in Q4FY24. Within a short span, LAP now contributes 5.8% to the total AUM (INR 343.4 crore), scaling across 82 branches. This not only secures the book but also increases the average ticket size (up to INR 30 lakh and borrower stickiness.

3. Kissht IPO Valuation: The Primary Catalyst for the “Subscribe” Rating

Across the Kissht IPO research notes, valuation is the biggest draw for this IPO. At the upper band of INR 171, the stock demands a post-issue Price-to-Book (P/B) multiple of ~1.37x to 1.4x and a P/E of ~10.8x to 17.9x.

Geojit and Marwadi Shares and Finance explicitly point out the massive discount this offers compared to listed peers. For context:

Bajaj Finance: ~5.5x – 5.9x P/B
Cholamandalam: ~5.1x – 5.5x P/B
SBI Cards: ~4.5x P/B For a company delivering a Return on Equity (RoE) of 17.7% and a Return on Assets (RoA) of 7.1%, this valuation leaves significant money on the table for retail investors.

4. OnEMI Technology IPO Broker Recommendations: Micro-View

Geojit (Subscribe for High-Risk Investors): Notes the company’s industry-leading Interest Spread of 15.3% and robust capital adequacy (CRAR of 21.1%). However, they caution that the short-to-medium term play is strictly for investors who understand unsecured lending risks.
BP Equities (Subscribe): Emphasises the sheer speed of execution—over 85% of new customers receive loan offers within 10 minutes. They also note that the Cost-to-Income ratio (55.6%) is currently higher than peers, indicating future headroom for operational efficiency and margin expansion.
Anand Rathi (Subscribe – Long Term): Bullish on the company’s “Brandformance” strategy. With Sachin Tendulkar as the face of the brand, an NPS (Net Promoter Score) of 95, and 50.6% of AUM coming from repeat customers, they see strong brand loyalty.
Hem Securities (Subscribe): Praises the fundamental growth. AUM grew at an incredible 79.5% CAGR from FY23 to FY25, and PAT surged at a 140.9% CAGR.
Adroit Research (Subscribe): Highlights the AI/ML backbone. With 39 underwriting models processing 400+ data variables per user, Adroit believes the tech infrastructure is robust enough to handle the scale.
Ventura Securities (Subscribe): Views OnEMI as a pure-play digital ecosystem bridging the gap for India’s emerging middle class.
Marwadi Shares (Subscribe): Cites reasonable valuation and advanced risk management as the core reasons to apply.

Kissht IPO Broker Recommendations: Neutral & Bearish Views

SMC Global (Ranking: 2/5): Takes a highly conservative stance. They warn investors about the negative operating cash flows (outflow of INR 138 crore in 9MFY26) and point out that the company relies heavily on third-party IT infrastructure.
HDFC Securities (Informational): Highlights that while the tech stack (LOS, LMS) is proprietary, the heavy concentration of unsecured loans (94.2%) is a macro-economic vulnerability.
GEPL Capital (Avoid): The sole brokerage issuing a clear “Avoid.” They argue that the Gross NPA has jumped from 0.05% in FY23 to 2.90% in 9MFY26. They also cite intense competition from behemoths like Bajaj Finance and high concentration risk in specific consumption sectors (auto/consumer electronics).

Bottomline

So, what is the bottom line? When we aggregate Kissht IPO broker recommendations, the scales appear to tip quite decisively in favour of the company. Yes, unsecured lending inherently carries a certain risk; however, the manner in which the company has mitigated these risks—through its AI-driven underwriting and a good PCR of ~87%. The company also forays into secured lending to stabilise its portfolio.

Another noteworthy factor is OnEMI Technology IPO’s valuation. While NBFC veterans are trading at Price-to-Book (P/B) ratio of 5x to 6x, OnEMI is available to investors at a mere ~1.4x P/B. Coupled with this attractive pricing are an 80% AUM growth and 17.7% RoE.