Sachin Bansal’s Navi Technologies is reportedly planning to file its draft red herring prospectus (DRHP) with SEBI for a ₹4,000 crore IPO sometime this week.

According to reports, the company wants to launch its IPO in June this year and IPO will be done entirely through new shares issuance, without any OFS (offer for sale) component. Bansal holds about 97 per cent stake in the company and will not be diluting his stake in the IPO.

Future growth plans

The IPO is expected to help Navi in supporting its growth in personal loans, microfinancing, in addition to its mutual fund business. Further, Navi is said to use the money to fuel its growth plans which include building a loan book of ₹20,000 crore in the next two years and in the same period, raising about ₹15,000 crore as debt from the public markets.

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In February 2022, Navi converted itself into a public entity in its preparation for an IPO. The fintech company has appointed ICICI Securities, BofA Securities and Axis Capital to help in managing its public listing.

Navi Technologies was founded by Sachin Bansal and Ankit Agarwal to build consumer-centric and technology-driven businesses in the BFSI (Banking, Financial Services and Insurance) space. Currently, Navi Technologies runs a personal and home loan platform Navi Finserv, health insurance arm Navi General Insurance, mutual funds platform Navi Asset Management Company and microfinance and lending vertical Chaitanya Micro Finance.

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) but is yet to get the licence. Currently, Navi’s loan book is said to be close to ₹3,600 crore, including home loans, personal loans and microfinance loans.

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