Sachin Bansal-led Navi Technolgies Ltd’s proposal for an initial public offering (IPO) has been cleared by the Securities and Exchange Board of India (Sebi).
The Bengaluru-based firm had filed its draft red herring prospectus in March proposing to raise ₹3,350 crore through its IPO.
The offer will comprise fresh issuance of equity shares to investors. The company said it aims to raise funds essentially for investment into the company’s subsidiaries Navi Finserv Pvt. Ltd and Navi General Insurance Ltd and other general corporate purposes. The net proceeds are proposed to be deployed in 2023.
Incorporated in 2018 by Sachin Bansal and Ankit Agarwal, the Bengaluru-based company offers financial services. As a part of its portfolio, the ‘Navi’ brand includes personal loans, home loans, general insurance and mutual funds. It also offers microfinance loans through a wholly owned subsidiary under the Chaitanya brand. In 2019, Navi acquired Chaitanya India Fin Credit for ₹739 crore to enter the microfinance segment.
“We are uniquely positioned in India as one of the leading end-to-end digital ecosystem players with complete control over all three non-payments financial service offerings—lending, insurance and asset management,” the company said citing a RedSeer report.
In terms of the company’s financials, for the nine-month period ended December 2021, it had a net loss of ₹206 crore, compared with a profit of ₹71 crore for FY21.
Axis Capital, BofA Securities India Ltd, Credit Suisse Securities India Pvt. Ltd, Edelweiss Financial Services and ICICI Securities Ltd are the lead book running lead managers to the issue.
This year, the Reserve Bank of India rejected Navi’s application for a universal banking licence.
During a press conference in May this year, Bansal said, “We will ask RBI the reason behind this decision. We are going to evaluate RBI’s written response and chart out our next course of action. There could be an appeal from us against this decision. Navi may even reapply.”
