Whalesbook
IPO Adjustments
Digital lending firm Kissht has significantly revised its Initial Public Offering, reducing the fresh issue size to Rs 850 crore from Rs 1,000 crore. The offer-for-sale component has also been substantially pared, with shares on offer now at 4.4 million, down from 8.9 million. The issue, priced between Rs 162-171 per equity share, is set to open for subscription on Thursday and close on May 5. At the upper end of the price band, the total issue size is approximately Rs 926 crore.
Regulatory Pressure and Financial Dip
The adjustments come as Kissht, like many digital lenders, navigates increased scrutiny from the Reserve Bank of India concerning unsecured loans. This environment has impacted the company's financial performance. Net total income for fiscal year 2025 declined to Rs 1,188 crore from Rs 1,632 crore in FY24. Profit after tax saw a similar dip, falling to Rs 160.6 crore from Rs 197.3 crore in the preceding year. In the nine months ending December 2025, profit stood at nearly Rs 200 crore on net income of Rs 1,378 crore.
Investor Landscape and Promoter Actions
Venture capital firm Vertex Ventures is a major selling shareholder, aiming to offload up to 1.7 million shares. Other investors like Ammar Sdn Bhd, Endiya Partners, Ventureast, and AION Advisory Services are also participating in the offer-for-sale. Notably, Bengaluru-based Ventureast, having invested in 2016, stands to gain substantially from the IPO, given its low acquisition cost of Rs 15.73 per share. Promoters Ranvir Singh and Krishnan Vishwanathan bolstered their holdings by approximately Rs 40 crore last month, ahead of the public issue. Singh holds 18.8%, Vishwanathan 13.5%, and Vertex Ventures nearly 22% of the company.
Business Model and Future Outlook
Kissht offers unsecured personal loans primarily to young, middle-income borrowers in southern and western India. Its parent, OnEMI Technology, reported an asset under management (AUM) of Rs 5,956 crore as of December-end. The company has shifted its focus towards longer-tenured, higher-ticket loans, with loans of six months or longer now comprising 98% of its business. The IPO proceeds are earmarked to strengthen the company's capital base for future lending activities.