Sachin Bansal-promoted NAVI Technologies Ltd.(NAVI), a Systemically Important Non-Deposit taking Non-Banking Finance Company (‘NBFC-ND-SI’) and engaged in the ‘micro finance’ business as an NBFC-MFI filed its Draft Red Herring Prospectus (DRHP) with stock market regulator, the Securities and Exchange Board of India (SEBI).
The company plans to raise funds via Initial Public offering (IPO) through fresh issue aggregating up to Rs 3,350 crore. NAVI proposes to utilise the Net Proceeds towards funding the following objects:
1. Investment into Subsidiaries, Navi Finserv Private Limited (“NFPL”) and Navi General Insurance Limited (“NGIL”); and
2. General corporate purposes.
The company proposes to infuse ₹2,370 crore from the Net Proceeds in NFPL, to ensure that NFPL is able to comply with the capital adequacy requirements prescribed by the RBI, and meet its future capital requirements.
Further, the company proposes to infuse ₹150 crore from the Net Proceeds in NGIL, for the augmentation of the capital base of NGIL to ensure maintenance of the IRDAI prescribed solvency levels and to meet its future capital requirements.
Founded in 2018, Navi started with consumer-centric and technology-driven businesses in the BFSI space. Today, Navi is an end-to-end financial services provider, offering digital personal loans, digital home loans and loans against property in the lending space, digital direct to consumer health insurance, and digital asset management with a passive fund focus. The company also offers microfinance loans, through a wholly-owned Subsidiary, under the “Chaitanya” brand.
The total income for the nine months ended December 31, 2021 and the Financial Years 2021, 2020 and 2019 amounted to ₹719.3 crore, ₹780 crore, ₹207 crore and ₹16.9 crore, respectively.
Since the launch and up to December 31, 2021, the company has disbursed 481,121 personal loans amounting to ₹2,246 crore. As of December 31, 2021, the personal loans business had an AUM of ₹1,418.6 crore. During the nine months ended December 31, 2021, the company disbursed 308,383 personal loans amounting to ₹1,572.4 crore, with an average ticket size of ₹50,990. As of December 31, 2021, the company had Home Loan AUM of ₹177.7 crore and since launch NAVI has disbursed 604 loans with an average ticket size of ₹38.6 lakh.
The Book Running Lead Managers to the offer are Axis Capital Limited, BofA Securities India Limited, Credit Suisse Securities (India) Private Limited, Edelweiss Financial Services Limited and ICICI Securities Limited. Legal Counsels comprise Cyril Amarchand Mangaldas, IndusLaw and Sidley Austin LLP. The equity shares are proposed to be listed on BSE and NSE.