Navi Technologies IPO

Last Updated: 18 July 2023 5:18 PM by rahul_raskar

Navi Technologies led by Sachin Bhansal is set to come forth with its IPO and has filed its preliminary papers with SEBI. 
The IPO consists of fresh issue of equity shares worth Rs. 3,300 crores. There will not be any stake sale, neither will Sachin Bhansal dilute any of his stake. The company may consider a pre-IPO placement round worth Rs. 670 crores which may reduce the initial issue size. 
ICICI Securities, BofA Securities and Axis Capital, Credit Suisse Securities (India) Pvt Ltd and Edelweiss Financial Services are the book running lead managers to the public issue.

Objective of the Issue

The proceeds of the IPO will be used for: 

1. to invest in subsidiaries - Navi Finserv Pvt Ltd (NFPL) and Navi General Insurance Ltd (NGIL)
2. for general corporate purposes.

Navi Technologies is a tech-driven financial products and services company. The company has expanded 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. Under this brand, it extends credit to low-income women in rural and semi-rural areas across India. 
In the MF space it has launched the exchange traded funds (ETFs) with lowest fee structure. Navi MF had acquired assets of Essel MF in 2021 and per December quarter data, NaviMF assets are worth Rs.930 crores.
In personal loans, it instantly offers loans of up Rs.20 lakh through a completely paperless process.
In the general insurance business, it has acquired DHFL General Insurance Limited in February 2020, and now offers insurance products under the “Navi” brand and focuses on providing simple to understand and comprehensive retail health insurance offerings to the digitally connected Indian population through its direct to customer approach. It also launched home insurance products with the aim of providing a new perspective on the manner that insurance is purchased in India.
Under the home loan business, it extends loans for ready to move-in, under-construction and self-constructed properties, and (b) loans against property for constructed properties.
The largest vertical for Navi is microfinance loans where the company had assets under management (AUM) worth Rs 1,808 crore in Q3 of FY22. Gross non-performing assets (NPAs) for the vertical stood that 3.83 percent in the same quarter. For personal loans, Gross NPAs stood at 1.12 percent

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