Navi Finserv plans to raise Rs 600 crore through public issuance of NCDs

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Navi Finserv Limited (NFS), a wholly owned subsidiary of Navi Technologies Limited (Navi), has announced the public issue of Secured, Rated, Listed and Redeemable Non-Convertible Debentures (NCDs) amounting to Rs 600 crore with a base issue of Rs 300 crore and an option to retain over-subscription of another Rs 300 crore.

The issue will open on Monday 23rd May, 2022 and is scheduled to close on Friday, 10th June, 2022 with an option of early closure or extension.

The proposed NCDs have a rating of A (Stable) by India Ratings & Research Pvt Ltd.

Investors get an opportunity to participate in secured NCDs under various series for tenure of 18 months and 27 months with an effective yield of upto 9.80% and a minimum application size of Rs 10,000.

“The upcoming NCD issue aims to raise funds for onward lending and financing purposes. This will further diversify our borrowing profile and add more retail investors to our portfolio to complement our wide base of Institutional partners,” said Ankit Agarwal, Managing Director of NFS.

“At Navi, our mission is to provide financial products that are simple, affordable and accessible. I believe that our customer centric and technology first approach along with our robust underwriting and collections capabilities adds value to Navi Finserv’s maiden public debt issue,” said Sachin Bansal, Chairman & CEO of NFS.

NFS offers personal loans and home loans under the “Navi” brand. The company’s net worth stood at Rs 11,895.72 million as on December 31, 2021 and maintained a comfortable standalone debt to equity ratio of 2.1x as on December 31, 2021.

NCDs in the public issue will be allotted on a first-come first serve basis and thereafter on proportionate basis, i.e. full allotment of the NCDs to the Applicants on a first come first basis up to the date falling 1 (one) day prior to the date of oversubscription and proportionate allotment of NCDs to the applicants from the date of oversubscription.