Navi Technologies, a fintech company focused on BFSI (Banking, Financial Services & Insurance) space, has revealed filing of draft papers with market regulator Securities & Exchange Board of India ( SEBI) to raise Rs 3,350 crore via Initial Public Offering ( IPO) route.
The IPO would be a 100% fresh issue of equity share, and none of the promoters is offloading its stake, according to the draft red herring prospectus (DRHP) filed with SEBI.
Navi is a digital lending platform founded by Sachin Bansal & Ankit Agarwal. Bansal has so far infused around Rs 4,000 crore into Navi Technologies and is not willing to slash his stake in IPO.
According to a PTI report citing sources familiar with the subject, the initial public offering will take place in June this year.
Before the launch of the IPO, it is possible that the company may seek pre-IPO placement of up to Rs 670 crore. If such a placement is accepted, it may happen that the size of the public issue will be trimmed.
IPO Proceed:
The company wishes to use the proceeds from the issue sale in the following ways:
- To invest into subsidiaries: Navi Finserv Pvt Ltd (NFPL), Navi General Insurance Ltd (NGIL)
- For general corporate purposes.
Book Running Lead Managers:
The company has picked ICICI Securities, BofA Securities and Axis Capital, Credit Suisse Securities (India) Private Limited and Edelweiss Financial Services as their book running lead managers to the public issue.
After leaving Flipkart, Bansal along with former Bank Of America employee Ankit Agarwal founded Navi Technologies four years back.
Navi Technologies is a new fintech company, providing services in the areas of lending, insurance and mutual funds.
Since its establishment, the company has been offering personal loans, home loans, general insurance and mutual funds under the brand name “ Navi”.
The company also provides microfinance loans, via a wholly-owned subsidiary, under the “Chaitanya” brand.
Navi earlier bought Chaitanya India Fin Credit for Rs 739 crore in 2019 to foray into the microfinance industry. Chaitanya is also waiting for the nod from the Reserve Bank of India to grant a universal banking license.