Bengaluru, March 12
Sachin Bansal’s Navi Technologies has filed its Draft Red Herring Prospectus (DRHP) with SEBI to raise ₹3,350 crore through an initial public offering (IPO).
According to the DRHP, Navi’s IPO is through a fresh issue of equity shares and with no offer for sale (OFS). Further, the company may consider the pre-IPO placement of upto ₹670 crore and if the pre-IPO placement is undertaken, the size of fresh issue will be reduced.
The IPO proceeds will be used by the fintech company to invest in company’s subsidiaries Navi Finserv Pvt Ltd (NFPL), Navi General Insurance Ltd (NGIL) and general corporate purposes. Navi Technologies has reported a consolidated profit of ₹71 crore in FY 2021, and a loss of ₹8 crore in FY20. The fintech company’s revenue from operations are reported to have grown from ₹56 crore in FY20 to ₹137 crore in FY21.
Bansal has 281,725,980 equity shares in the company which make up 97.77 per cent of Navi Technologies’ pre issue paid-up equity share capital. Founded by Bansal and Ankit Agarwal in 2018, Navi is a technology-driven financial products and services company focused on the digitally connected young middle-class population of India. Some of the company’s offerings include personal loans, home loans, general insurance and mutual funds. It also offers microfinance loans, through a wholly-owned subsidiary, under the brand ‘Chaitanya’.
In 2019, Navi acquired Chaitanya India Fin Credit for ₹739 crore to enter the microfinance segment. Later in 2020, Chaitanya applied for a universal banking licence from the Reserve Bank of India (RBI).
Last month, Navi converted itself into a public entity in its preparation for an IPO. Investment banks such as Axis Capital, BofA Securities, Edelweiss Financial Services, ICICI Securities and Credit Suisse are working on the Navi Technologies IPO. Indus Law and Cyril Amarchand Mangaldas are the company’s legal advisors.