Draft papers filed by Navi Technologies for Rs 3,350-cr IPO
- ByStartupStory | March 12, 2022
Navi Technologies led by Sachin Bansal filed preliminary papers with Sebi in order to raise about Rs 3,350 crore through an initial public offering (IPO).
According to the draft red herring prospectus (DRHP), the proposed IPO is complete through a fresh issue of equity shares and there will be no offer-for-sale (OFS). Flipkart co-founder Bansal, is not diluting his stake in the IPO, till date he has invested around Rs 4,000 crore into Navi.
The initial share-sale is likely to open in June. A pre-IPO placement aggregating to Rs 670 crore may be explored by the company by going through the draft papers. The size of the public issue will be reduced if such placement is undertaken.
The IPO proceeds will be used so as to invest in subsidiaries Navi Finserv Pvt Ltd (NFPL) and Navi General Insurance Ltd (NGIL) and for general corporate purposes. Along with Ankit Agarwal, Bansal founded Navi in 2018, after moving out of Flipkart.
Navi Technologies is a tech-driven financial products and services company. Since the company’s incorporation, personal loans, home loans, general insurance and mutual funds are included so as to expand the offerings under the Navi brand. Under the “Chaitanya” brand, microfinance loans through a wholly-owned subsidiary is also offered.
Navi is a digital lending app which provides loans through a completely paperless process of up to Rs 20 lakh instantly. The book running lead managers to the public issue includes ICICI Securities, BofA Securities and Axis Capital, Credit Suisse Securities (India) Pvt Ltd and Edelweiss Financial Services. Navi had acquired Chaitanya India Fin Credit for Rs 739 crore in 2019, in order to enter the microfinance segment. Chaitanya had also applied for a universal banking licence to the Reserve Bank of India (RBI).
Follow Startup Story
Related Posts
