Navi Finserv to Raise up to Rs 600 Crore through NCD Issue Prior to its IPO
Navi Finserv, a subsidiary of Navi Technologies led by Sachin Bansal, plans to raise up to Rs 600 crore by issuing secured and redeemable Non-Convertible Debentures (NCDs), according to a filing by the company. The NCDs will have a face value of Rs 1,000 each, with an aggregate amount of up to Rs 300 crore and an option to retain oversubscription of up to Rs 300 crore.
The NCD issue will open offering tenors of 18 months and 27 months, with yields ranging from 9.57 percent to 9.80 percent. Sachin Bansal, Chairman of Navi Technologies, expressed his enthusiasm about the debt public issue, stating, “This is almost like a record that is being created, that a young company like ours is able to create a debt public issue, something that is usually associated with large mature organizations.”
Navi is the first fintech company to announce an NCD issue while still awaiting its Initial Public Offering (IPO). In March this year, Navi filed draft papers with the Securities and Exchange Board of India (SEBI) for an IPO worth Rs 3,350 crore. The company operates in various sectors, including lending, general insurance, mutual funds, and microfinance.
The net proceeds from the NCD issue will be allocated with 75 percent for onward lending and financing, while 25 percent will be utilized for general corporate purposes. The IPO plans by Navi come amidst uncertainty over its Universal Banking license application. Sachin Bansal, the co-founder of Flipkart, founded Navi in 2018 after exiting Flipkart, which was subsequently acquired by Walmart for $16 billion.
Bansal envisions Navi as a bank for a billion people, emphasizing simplicity, automation, and user-friendly experiences. The company plans to invest the proceeds from its planned IPO in Navi Finserv and General Insurance. In recent developments, Navi appointed Vidit Aatrey, the founder of social commerce platform Meesho, as an independent director on its board. The company now boasts four independent directors, including Abhijit Bose, Shripad Nadkarni, and Usha A. Narayanan.
The NCD issue will open offering tenors of 18 months and 27 months, with yields ranging from 9.57 percent to 9.80 percent. Sachin Bansal, Chairman of Navi Technologies, expressed his enthusiasm about the debt public issue, stating, “This is almost like a record that is being created, that a young company like ours is able to create a debt public issue, something that is usually associated with large mature organizations.”
Navi is the first fintech company to announce an NCD issue while still awaiting its Initial Public Offering (IPO). In March this year, Navi filed draft papers with the Securities and Exchange Board of India (SEBI) for an IPO worth Rs 3,350 crore. The company operates in various sectors, including lending, general insurance, mutual funds, and microfinance.
The net proceeds from the NCD issue will be allocated with 75 percent for onward lending and financing, while 25 percent will be utilized for general corporate purposes. The IPO plans by Navi come amidst uncertainty over its Universal Banking license application. Sachin Bansal, the co-founder of Flipkart, founded Navi in 2018 after exiting Flipkart, which was subsequently acquired by Walmart for $16 billion.
Bansal envisions Navi as a bank for a billion people, emphasizing simplicity, automation, and user-friendly experiences. The company plans to invest the proceeds from its planned IPO in Navi Finserv and General Insurance. In recent developments, Navi appointed Vidit Aatrey, the founder of social commerce platform Meesho, as an independent director on its board. The company now boasts four independent directors, including Abhijit Bose, Shripad Nadkarni, and Usha A. Narayanan.
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