OnEMI, the parent company of digital lending platform Kissht, has approved a preferential issue worth Rs 832 crore, the company announced this week. The board's decision aims to raise capital through this preferential allotment to support its growth plans and strengthen its balance sheet, according to economictimes.indiatimes.com.
The preferential issue was approved during a recent board meeting of OnEMI, which oversees Kissht's operations. This capital raise involves issuing shares to select investors at a predetermined price, a common method for companies seeking to boost equity capital. The move is expected to enhance OnEMI's financial flexibility and support its lending business expansion, the report detailed.
This Rs 832 crore preferential issue comes amid a competitive digital lending market in India, where companies are increasingly seeking fresh capital to scale operations and improve technology infrastructure. Comparable deals in the fintech sector have shown a trend of raising substantial funds through preferential allotments to meet growing demand for consumer credit, as noted by economictimes.indiatimes.com.
OnEMI's board approval of the Rs 832 crore preferential issue marks a significant step in its capital-raising efforts. The company will now proceed with the allotment process as per regulatory guidelines, aiming to complete the transaction in the near term.