Sachin Bansal-led Navi Technologies has filed its preliminary papers with the Securities and Exchange Board of India (Sebi) on Saturday to raise Rs 3,350 crore through an initial public offering (IPO). The company is a tech-driven financial products and services company founded in 2018.
According to the offer documents filed with the regulator, the entire public issue consists of fresh issue of shares, and shareholders of the company will not offload any shares through the offer-for-sale (OFS) route.
Sachin Bansal, the co-founder of the company, has invested around Rs 4,000 crore till date in the company, will not offload his stake through the offer.
The company is also likely to explore a pre-IPO placement aggregating to Rs 670 crore and the issue size will be reduced if the same is carried out. The proceeds of the offer will be used for investment in two of its subsidiaries — Navi Finserv Pvt. Ltd. (Rs 2,370 crore) and Navi General Insurance Ltd. (Rs 150 crore), and further for general corporate purposes.
“The net proceeds are proposed to be deployed in Financial Year 2023,” the company said in its draft red herring prospectus (DRHP).
Incorporated in 2018 by Sachin Bansal and Ankit Agarwal, the company has expanded its offerings under the “Navi” brand to include personal loans, home loans, general insurance, and mutual funds.
It also offers microfinance loans, through a wholly-owned Subsidiary, under the “Chaitanya” brand.
Navi had acquired Chaitanya India Fin Credit for a sum of Rs 739 crore in 2019 and the subsidiary has also applied for a universal banking licence with the Reserve Bank of India (RBI).
As of December 31, 2021, Navi’s net loss stood at Rs 206 crore against a profit of Rs 71 crore reported in FY21.
The revenues during the nine months ended December 31, 2021, stood at Rs 719 crore against Rs 780 crore posted in FY21.
