OnEMI Tech IPO far from fully booked; brokerage flags key risks
OnEMI Technology Solutions' IPO remains underbooked on the second day with weak retail and NII demand, and a muted grey market premium. Brokerages have cautioned investors about structural risks in the business, including credit risks and contingent liabilities.
OnEMI Technology Solutions' IPO was subscribed just 0.63 times by the end of the second day of bidding. The qualified institutional buyers (QIB) portion was subscribed 1.51 times, while retail investors subscribed only 0.17 times. The grey market premium stands at around Rs 1.5, indicating a marginal listing gain. Brokerages have flagged risks, including the company's heavy reliance on unsecured lending and contingent liabilities totalling Rs 1,793.49 crore. The IPO is valued at around 1.4 times price-to-book, which is considered fairly priced relative to peers but does not offset the inherent risks.
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