Navi Technologies Limited, Flipkart co-founder Sachin Bansal, has received a green signal from the Securities and Exchange Board of India (SEBI) to be listed on the stock exchange via an initial public offering. The date and time of Navi Technologies’ IPO has not yet been set. The company already submitted the draft papers for the IPO in March of this year.
In its draft Red Herring Prospectus or DHRP submitted in March, Navi Technologies had attempted to raise up to Rs 3,350 crore through a new share issuance. According to a report by Moneycontrol, the IPO will have an offer to sell (OFS) from Bansal, which owns 97.39 percent of the fintech.
According to DHRP, the net proceeds from Navi Technologies’ IPO will be used for investments in the company’s subsidiaries, Navi Finserv Private Limited (“NFPL”) and Navi General Insurance Limited (“NGIL”), and for general corporate purposes. “In addition, our company anticipates the benefits of listing the shares on the stock exchanges, including enhancing the brand name of our company and creating a public market for our shares in India,” the draft IPO papers read.
The Company has proposed to invest Rs 23,700.00 million from the net proceeds in NFPL while further investing Rs 1,500.00 million from the net proceeds in NGIL.
According to previous plans, Navi Technologies’ IPO should start in June. However, the final dates have not yet been confirmed.
Navi Technologies is a technology-focused financial products and services company. Since the company’s inception, it has expanded its offering 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.
“Our company, in consultation with the BRLMs, may consider pre-IPO placement totaling up to Rs 6,700.00 million. If the pre-IPO placement is conducted, the size of the re-issuance will be reduced to the size of such pre-IPO placement,” the DHRP said.
After exiting Flipkart, Bansal – along with Ankit Agarwal – founded Navi in 2018.
According to its website, Navi is a digital lending app that provides loans up to Rs 20 lakh instantly through a completely paperless process. ICICI Securities, BofA Securities and Axis Capital, Credit Suisse Securities (India) Pvt Ltd and Edelweiss Financial Services are the lead bookers for the public offering. In order to enter the microfinance segment, Navi had acquired Chaitanya India Fin Credit for Rs 739 crore in 2019. Chaitanya had also applied to the Reserve Bank of India (RBI) for a universal banking license.
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