Sachin Bansal’s Navi Technologies to File ₹4,000 Crore IPO

IPOs have been quite common over the months, and since last year they have dotted the Indian startup landscape more than ever. Last year saw 65 Indian IPOs (and over 40 unicorns, but that’s another story), and that trend has continued this year. From now on, it is Navi Technologies, Sachin Bansal’s financial giant, which should soon file its draft misleading prospectus (DRHP).

DRHP is expected to be filed with market regulator SEBI (Securities and Exchange Board of India) for Navi’s ₹4,000 crore IPO. We could see the IPO as early as June.

If raising ₹4,000 crore is not enough, Navi also plans to raise at least double that amount through public debt later this year. The funds will be deployed for the aggressive growth of its lending business. This growth includes achieving goals such as building a loan portfolio worth ₹20,000 crore over the next two years. In the same period, he plans to raise almost ₹15,000 crore in public market debt.

Going back to the IPO, it will be entirely made up of a new capital increase and there will be no offer for sale (OFS). This means that Bansal will not sell shares to investors in the IPO and therefore will not dilute its stake. Currently, he owns a 97% stake in three-year-old Navi. To date, he has invested around ₹4,000 crore in Navi.

Founded by Bansal and Ankit Agarwal and launched on December 10, 2018, Navi has an extensive lending business including digital personal loans up to ₹20 lakhs, home loans, mutual funds, health insurance and micro -ready. It manages personal and home loans through Navi Finserv, mutual funds through Navi Asset Management Company.

It offers health insurance with its health insurance vertical Navi General Insurance and microfinance and lending services with Chaitanya Micro Finance. Chaitanya India Fin Credit was acquired by Navi in ​​2019 for ₹739 crore. Chaitanya had also applied for a universal banking license from the RBI.

The Bengaluru-based financial services company claims to have around three million monthly active users and disbursed personal loans of almost ₹500 crore last month. The same figures vary between ₹900-1000 crore per month if one includes microfinance and housing loans.

It’s a good time for the tech-focused financial services company to go public. It had become profitable in FY21 and recorded a consolidated profit of ₹71 crore. Recently, it has also transformed into a public limited company. For now, it has appointed ICICI Securities, BofA Securities and Axis Capital to manage its public issuance.

Sachin Bansal’s Navi Technologies to File ₹4,000 Crore IPO

Source link Sachin Bansal’s Navi Technologies to File ₹4,000 Crore IPO

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