Kissht parent OnEMI board approves Rs 832 crore preferential issue

The board of OnEMI Technology Solutions, which operates digital lending platform Kissht, has approved a proposal to raise up to Rs 832 crore through a preferential issue, a little over four months after the company listed on the stock exchanges.

Kissht plans to issue up to 26.49 million equity shares at Rs 314.11 apiece to 34 investors in the non-promoter category, according to an exchange filing on Thursday. The transaction is subject to shareholder and other statutory and regulatory approvals, the company said.

The investors include Axis Mutual Fund, HDFC Mutual Fund and Groww Mutual Fund, besides 360 One Equity Opportunity Fund, WhiteOak funds, Citigroup Global Markets Hong Kong, Massachusetts Institute of Technology and Nippon India Equity Opportunities AIF. Unity Small Finance Bank and Envision India Fund are also participating in the issue.


The company said that it will seek shareholder approval for the preferential issue at an extraordinary general meeting on October 14. The filing did not specify how Kissht plans to deploy the proceeds. The company, in a stock exchange filing on September 14, had said that its board will be meeting on Thursday to consider raising funds.

The issue price represents a discount of about 13% to OnEMI’s Thursday closing price of Rs 360. The stock rose 5.2% during the session and touched an all-time high of Rs 366.90. It has gained nearly 89% from its listing price of Rs 191 in May and has more than doubled from its IPO issue price of Rs 171.

The fresh capital raise comes soon after OnEMI raised Rs 926 crore through its initial public offering, comprising an Rs 850-crore fresh issue and an offer for sale of about Rs 76 crore. The final issue was smaller than its original proposal of a Rs 1,000-crore fresh issue and an OFS of 8.8 million shares. Around Rs 637.5 crore of the fresh IPO proceeds was earmarked for its non-banking financial company Si Creva to support loan-book growth.

Kissht has continued to expand its lending business following the listing. Operating revenue rose 45% year on year to Rs 670 crore in the June quarter, while net profit increased 59% to Rs 95 crore. Assets under management rose 61% to Rs 8,001 crore at June-end, while loan disbursements grew 37% to Rs 3,812 crore.

Founded in 2015 by former McKinsey executives Ranvir Singh and Krishnan Vishwanathan, Kissht started with checkout finance and has since expanded into personal and secured loans through its own balance sheet and lending partnerships.