Navi Finserv NCD issue to close on 02nd June
The NCD (non-convertible debentures) issue of Navi Finserv, which opened for subscription on 23rd May, has decided to close the NCD issue early on 02nd June. The original date for closing the issue was 10th June 2022, but due to a good response to the issue, the company has decided to pre-close the NCD issue on 02nd June itself.
A brief on Navi Finserv
Navi Finserv was floated in 2012 by Sachin Bansal, one of the co-promoters of Flipkart, the online ecommerce giant that was later sold to Wal-Mart. Nav Finserv is a financial services company, which offers digital personal loans, housing loans and loans against property. Most of the sanctions and disbursals are done electronically through its mobile app.
For the year ended March 2022, Navi Finserv had total AUM of Rs.2,949 crore, which had exhibited growth of 66% YoY. It has substantially shrunk its net losses in the March quarter and is on the verge of turning into profits. Its model of operation is mobile-first and app-only model, to make the best of the digital shift.
About the NCD Issue of Navi Finserv
Key details of NCD issue
These will be in the nature of secured, redeemable non-convertible debentures (Secured-NCDs). Here are key details of the issue.
|
Particulars |
Details of NCD |
Particulars |
Details of NCD |
|
Issue Opening |
23rd May 2022 |
Minimum lot size |
10 NCDs |
|
Issue Closing |
02nd June 2022 |
Total NCDs issued |
30,00,000 |
|
Face Value of NCD |
Rs.1,000 per NCD |
Size of the issue |
Rs.300 crore |
|
Interest Rate |
9.20% to 9.75% |
Credit Rating |
Ind/A Stable |
All allotments will be on a first come first serve basis. There will be a total of 4 options for investors ranging from Series 1 to Series 4, and we shall see these specific series in detail later. Depending on the Series selected, the tenure can vary from 18 months to 27 months and the coupon rate can vary from 9.20% to 9.75%.
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How is the allotment to be done for the NCDs?
The basis of allotment will be on a first come, first serve basis. However, there are category specific quotas defined in the NCD issue as under.
|
Investor Category |
Allocation (%) |
Actual NCDs reserved |
|
Institutional |
20% |
6,00,000 |
|
Non-Institutional |
20% |
6,00,000 |
|
HNI Category |
30% |
9,00,000 |
|
Retail Category |
30% |
9,00,000 |
|
Total |
100% |
30,00,000 |
The company will utilize the funds so raised for the purpose of boosting its capital comfort and also to boost its lendable resources. Ind/A Stable rating represents a high level of safety with respect to repayment of principal and timely payment of interest. These ratings are assigned by India Ratings.
Series I to IV NCDs: What do they imply?
The Navi Finserv NCD issue will have 4 options for the investors to choose from. Here are the 4 options that are currently available.
|
Details |
Series I |
Series II |
Series III |
Series IV |
|
Interest Frequency |
Monthly |
Annual |
Monthly |
Annual |
|
Tenor |
18 months |
18 months |
27 months |
27 months |
|
Coupon Rate |
9.20% |
9.50% |
9.40% |
9.75% |
|
Effective Yield |
9.59% |
9.57% |
9.80% |
9.77% |
|
Amount on Maturity |
Rs.1,000 |
Rs.1,000 |
Rs.1,000 |
Rs.1,000 |
Investors can select the NCD series of their choice. The issue and the redemption of the NCD will be at par. The extant yields on the NCD are fairly attractive by comparable yield standards on similar instruments. There are no call or put options and the issue being lead managed by AK Capital Services Ltd and JM Financial Consultants Private Ltd. Link Intime will be the registrars to the NCD issue.
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