Sachin Bansal-founded fin-tech startup Navi Technologies is set to issue Non Convertible Debentures worth Rs 600 crores in May.
The issue will be open from 23 May to 10 June with an option of early closure or extension.
The company will raise funds through secured, rated, listed, redeemable, non-convertible debentures of face value of ₹ 1,000 each.
The non-banking financial institution was formerly known as Chaitanya Rural Intermediation Development Services Private Ltd and was changed to Navi Finserv Private Limited in April.
By a special resolution passed by the shareholders on March 5, 2022, the company was also converted from a private limited company to a public limited company.
The company in its DRHP mentioned that it plans to use at least 75 percent of the proceeds for the purpose of onward lending and financing and the maximum up to 25% for general corporate purposes.
The NCDs are being issued in four series: coupon ranges from 9.20 percent to 9.75 percent per annum and different tenures of 1.5 years, and 2.3 years. The NCDs are secured and redeemable in nature.
ISSUE TYPE | Senior Secured |
ISSUE SIZE | ₹600 Crores |
RATING | INDIA RATINGS - IND A/Stable |
LEAD MANAGERS | A. K. Capital Services Limited, JM Financial Limited |
DEBENTURE TRUSTEE | Catalyst Trusteeship Limited |
REGISTRAR TO THE ISSUE | Link Intime India Pvt Limited |
Coupon rates and effective yield for each of the series
Series | Payment Frequency | Tenure | Coupon Rate | Yield |
I | Monthly | 18 months | 9.20 percent | 9.59 percent |
II | Annual | 18 months | 9.50 percent | 9.57 percent |
III | Monthly | 27 months | 9.40 percent | 9.80 percent |
IV | Annual | 27 months | 9.75 percent | 9.77 percent |
Minimum investment of ₹10,000 for 10 NCDs after which each NCD is available for ₹1000/- each
Allocation Ratio :
The pie chart shows the allocation ratio for NAVI NCD-IPO
About the Company
The Navi Group started with consumer-centric and technology-driven businesses in the BFSI sector in 2018. Presently, the group offers digital personal loans, digital home loans, and loans against property in the lending space, digital direct-to-consumer health insurance, and digital asset management for passive funds.
Businesses
- Personal Loan
- Micro-Finance Loans
- Home Loans
- Mutual Funds
- Health Insurance
Peers of the company-Global and Indian
Indian
- Bajaj Finance Ltd
- HDFC Ltd
Global
- Lufax Holding Ltd
- Nu Pagament os S.A. (Nu Bank)
Company Strengths
- Engaging and improving customer experience through Navi App
- A digital-first distribution model for disbursal of loan offerings without the need of a physical infrastructure allows for wider reach
- Strong Underwriting and Risk management model
- Robust Collection Mechanisms
- Diverse Borrowing Profile across fund raising mechanisms and lenders
- Strong leadership backed by an experienced management team and high corporate governance standards
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