Navi Technologies, helmed by Flipkart co-founder Sachin Bansal, has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a fresh offering of shares to raise Rs 3,350 crore from the public markets.
The Bengaluru-based company will contemplate a Rs 670 crore pre-IPO placement and adjust the size of the new equity share offering appropriately.
Sachin Bansal, who has invested almost Rs 4,000 crore in Navi thus far, has decided not to dilute his holdings during the IPO.
Navi Technologies stated in the DRHP that it will spend the money in it’s subsidiary Navi Finserv Private Limited (NFPL) and Navi General Insurance Limited from the capital raised (NGIL).
Navi’s overall revenue increased to Rs 779.1 crore in FY2021, up from Rs 199 crore in FY2020. In FY2021, the company’s revenue from client contracts was Rs 136.6 crore, up from Rs 55.98 crore in FY2020. Navi also recorded a loss of Rs 206.42 crore for the nine months ending December 31, 2021, as well as a loss of Rs 8.07 crore for the fiscal year 2020-21.
Navi Technologies, founded in 2018 by Sachin Bansal and Ankit Agarwal, provides tech-enabled financial products and services like as personal loans, home loans, general insurance, and mutual funds.
Navi entered the microfinance industry in 2019 when it purchased Chaitanya India Fin Credit for Rs 739 crore. Chaitanya had also applied to the Reserve Bank of India for a universal banking licence (RBI). Navi’s loan book is estimated to be around Rs 3,500 crore, according to reports.
In 2021, Navi MF purchased Essel MF’s assets, and the firm had filed for a blockchain fund the previous year. Sebi has also granted it a stockbroking license.
The investment banks working on the Navi Tech IPO are Axis Capital, BofA Securities, ICICI Securities, Edelweiss Financial Services, and Credit Suisse. Legal counsel is provided by Cyril Amarchand Mangaldas and Indus Law.
