Sachin Bansal’s financial services startup Navi Technologies has received a nod from security exchange board of India (SEBI) for Rs 3,350 crore worth of Initial Public Offering (IPO).
The Bengaluru-based company had filed Draft Red Herring Prospectus (DRHP) in March this year with SEBI to raise up to Rs 3,350 crore via a fresh issue of equity and appointed Axis Capital, BofA Securities, Credit Suisse, Edelweiss and ICICI Securities as the book-running managers.
The DRHP also stated that Rs 2,370 crore and Rs 1,090 crore will be invested into its subsidiaries Navi Finserv Limited (NFL) and Navi General Insurance Limited (NGIL) respectively. NGIL was launched after the company acquired erstwhile DHFL General Insurance Limited in February 2020.
Currently, Navi’s promoter Bansal is the largest shareholder of the company controlling a 97.77% stake in the company with other co-founder Ankit Agarwal holding 0.98% as of the date of DRHP.
Navi, which controls eight subsidiaries, is a full-stack financial service provider, which offers personal, home, loan against property et al. The company claims to have sanctioned more than Rs 9,000 crore worth loan to over 1.7 million customers.
Navi Finserv’s revenue from operations grew 31% to Rs 184.25 crore during Q1 of FY23 from Rs 140.7 crore in the last quarter of FY22, as per unaudited financial statements published on the company’s website. The company also booked a profit of Rs 22.91 crore in Q1 (FY23) against a loss of Rs 4.32 crore in Q4 (FY22). However, Navi Finserv reported operating revenue of Rs 457 crore for the year ending March 2022 with a loss of Rs 66.9 crore.
With this move, Navi would be the third major company from the financial service segment to go IPO. PolicyBazaar and Paytm had made their debut on stock exchanges in the previous calendar year (2021).