Navi Technologies gets Sebi nod for Rs 3,350-cr IPO

Navi Technologies gets Sebi nod for Rs 3,350-cr IPO

Sachin Bansal-promoted Navi Technologies has received a go-ahead from the capital markets regulator for its initial public offering (IPO). The fintech filed its draft red herring prospectus (DRHP) to raise Rs 3,350 via an IPO in March. Navi Technologies was issued an “observation letter” by Sebi on September 5, according to the latest update on the regulator’s website.

According to the DRHP, of the total Rs 3,350 crore that it plans to raise from the public issue, Rs 2,370 crore will be invested in Navi Finserv and Rs 150 crore will be infused into the general insurance arm. The rest will be used for overall expansion plans.

According to the DRHP, the company can be divided into four units – Navi Finserv, Chaitanya India Fin Credit, Navi General Insurance and Navi AMC.

As of Q3FY22, Navi’s microfinance loans had Rs 1,808 crore in assets under management (AUM) and a net non-performing assets (NPA) ratio of 0.98% after having disbursed Rs 6.75 lakh loans. Its personal loans category had Rs 1,418 crore in AUM with a net NPA ratio of 0.03% and the company had disbursed 2.18 lakh loans. The fintech’s insurance division sold 18,671 retail heath policies and had a gross written premium of Rs 29.6 crore. Its asset management business had Rs 943 crore in AUM and had 1.04 lakh mutual fund investors.

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The approval for the IPO comes as a relief to the company which was one among the six entities whose application for universal banking licence was earlier rejected by the Reserve Bank of India.

The total income of Navi Technologies grew from Rs 207 crore in financial year (FY) 2020 to Rs 780 crore in FY21. It incurred a loss of Rs 8 crore in FY20, but reported a profit of Rs 71 crore in FY21. In the nine months of FY22, the company had earned a total income of Rs 719 crore and incurred a loss of Rs 206 crore, its DRHP showed.