OnEMI Technology Solutions, the parent company of digital lending platform Kissht, has received in-principle approval from the BSE and NSE for a preferential share issue worth up to Rs 832.2 crore.
These approvals were granted on October 19, according to a regulatory filing submitted by OnEMI on October 20. The proposed issue will involve the allotment of up to 2,64,93,882 equity shares to 34 identified investors who are not part of the promoter group.
Company plans to issue the shares at Rs 314.11 each, including a face value component and a premium of Rs 313.11 per share. The approvals remain subject to applicable statutory and regulatory requirements, while OnEMI will have to seek listing approval after the shares are allotted.
OnEMI Gets Approval
Company fundraising plan was approved by the OnEMI board on September 17. Shareholders subsequently cleared the proposal at an extraordinary general meeting held on October 14, allowing the company to proceed with the proposed preferential issue.
Investor list includes several large financial institutions and investment entities. Axis Mutual Fund, HDFC Mutual Fund, Groww Mutual Fund, Bandhan Mutual Fund, WhiteOak and 360 ONE are among those named for participation.
Other proposed investors include Massachusetts Institute of Technology, Citigroup Global Markets Hong Kong, Nippon India Equity Opportunities AIF and Unity Small Finance Bank. The participation is subject to the completion of the proposed issue and applicable approvals.
Funds Support Operations
According to the earlier fundraising proposal, 75% of the proceeds will be invested in wholly owned subsidiary Si Creva Capital Services. The money is planned to support lending operations, technology development and expansion of the company product portfolio.
Remaining 25% of the proposed proceeds will be used for general corporate purposes. The allocation therefore places most of the fresh capital directly into the lending business rather than leaving the entire amount at the parent company level.
OnEMI is also targeting multiple credit rating upgrades over the next two years. The company expects stronger capitalisation and better ratings to reduce borrowing costs, improve access to funding and support higher lending capacity.
Kissht Lending Business
Proposed capital raise comes around five months after OnEMI entered the stock market through an initial public offering. The IPO raised Rs 926 crore and consisted of a fresh issue of Rs 850 crore and an offer for sale of about Rs 76 crore by existing shareholders.
OnEMI shares were listed on May 8 at Rs 191 on the BSE and Rs 190 on the NSE. The IPO issue price was Rs 171. The preferential issue is now being proposed at Rs 314.11 per share, subject to the completion of the required process.
Latest fundraising plan comes as the company seeks to increase the capital available for its lending operations. Its proposed investment in Si Creva is expected to provide additional resources for loan growth and technology-related spending.
What is Kissht
Kissht is a digital lending platform operated by OnEMI Technology Solutions. The company was founded in 2015 by Ranvir Singh and Krishnan Vishwanathan. It provides digital credit products through a technology-led model and works across consumer and business lending.
Platform uses digital processes for customer acquisition, credit assessment, loan processing and servicing. Its business also involves lending partnerships and operations through Si Creva Capital Services, the wholly owned subsidiary that is expected to receive most of the proposed new capital.
Kissht has built its lending business around borrowers looking for access to credit through digital channels. The planned investment in Si Creva is therefore directly linked to the parent group strategy of increasing lending capacity and strengthening its technology infrastructure.
Final Steps
BSE and NSE approvals are in-principle approvals and do not by themselves complete the fundraising. OnEMI still needs to meet the applicable statutory and regulatory conditions before allotting the proposed shares.
Company will also need to obtain listing approval for the new equity shares after allotment. The final size of the issue will depend on the number of shares actually allotted under the approved preferential issue.
For OnEMI, the proposed Rs 832.2 crore issue marks another major capital-raising exercise within months of its public listing. The stated use of proceeds puts lending expansion, technology investment and stronger capitalisation at the centre of the next phase of its business.
