Navi Finserv to raise up to Rs 500 Cr via public issue of NCDs

Sachin Bansal’s financial services platform Navi Finserv is looking to raise up to Rs 500 crore through the issue of secured and redeemable non-convertible debentures (NCDs). This is the second debt round for the company in the last 15 months.

The issue opens on Monday (July 10), and the subscriptions will close on July 21, with an option for early closure. Navi previously raised Rs 600 crore through public issue of NCDs in May 2022.

The Bengaluru-based company had received a nod from security exchange board of India (SEBI) for Rs 3,350 crore worth of Initial Public Offering (IPO) in September last year. 

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.

The NCD public offering will provide investors with a choice of five investment options, each with different durations: 18 months, 27 months (two series), and 36 months (two series). The fintech unicorn stated that the annual effective yields for the respective series are as follows: 10.18% for the first series, 10.73% for the second series, 10.78% for the third series, 11.01% for the fourth series, and 11.01% for the fifth series.

Furthermore, Navi will make monthly coupon payments for all series except the third and fifth, which will receive annual payments. The distribution of allocations for investor categories is as follows: 20% for Qualified Institutional Buyers (QIBs), 20% for corporates, and 30% each for High Networth Individuals (HNIs) and retail individuals.

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).