Sachin Bansal's Navi Finserv Limited is planning to raise ₹ 600 crore through public issuance of Non-Convertible Debentures (NCDs)

Press Release

• 18-05-2022

Navi Finserv Limited is planning to raise ₹ 600 crore through public issuance of Non-Convertible Debentures (NCDs)

• Includes a base issue size of ₹ 300 crore with an option to retain oversubscription upto ₹ 300 crore aggregating to ₹ 600 crore
• Proposed NCDs have been rated IND A/ Stable by India Ratings & Research Pvt Ltd
• Investors can get an effective yield of upto 9.8%* on their investment
• Issue opens on Monday, May 23, 2022

Kochi, May 17, 2022: Navi Finserv Limited (NFS), a wholly owned subsidiary of Navi Technologies Limited (Navi), today announced the public issue of Secured, Rated, Listed & Redeemable Non-Convertible Debentures (NCDs) amounting to ₹ 600 crore with a base issue of ₹300 crore and an option to retain over-subscription of another ₹300 crore. The issue will open on Monday 23rd May, 2022 and is scheduled to close on Friday, 10th June 10, 2022 with an option of early closure or extension.

The proposed NCDs have a rating of A (Stable) by India Ratings & Research Pvt Ltd. This rating is considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk.

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 ₹10,000.

Speaking about the NCD issue, Ankit Agarwal, Managing Director of NFS said, “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. This is a secured instrument with A (stable) rating, a low application size and an effective yield of upto 9.80%*.

Sachin Bansal, Chairman & CEO of NFS added: “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.”

NFS offers personal loans and home loans under the “Navi'' brand and we have approved personal loans to customers across over 84% of all Indian pin codes. 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.

NFS has maintained a strong asset quality reflected by its Net NPA of 0.08% (as on December 31, 2021), which is supported by a collections efficiency of 96.63% (for personal loans disbursed subsequent to April 1, 2021 till December 31, 2021). Its outstanding borrowings on a standalone basis of ₹27,749.76 million as of March 31, 2022 was diversified across an array of instruments such as NCDs, sub-debt, term loans, market linked debentures, commercial papers and, securitisation instruments such as PTCs.

About Navi Group:

Co-founded by Sachin Bansal and Ankit Agarwal, the Navi group offers a range of financial services and products such as Personal Loans, Home Loans, Retail Health Insurance and Mutual Funds.

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.

* Yield for 27 months monthly payment option. Please refer to the prospectus for further details (https://www.navifinserv.com/prospectus)

This Issue shall remain open for subscription on Working Days from 10 a.m. to 5 p.m. (Indian Standard Time) during the period indicated above, except that this Issue may close on such earlier date or extended date (subject to a period of maximum of 30 days from the date of  Prospectus) as may be decided by the Board of Directors of our Company or a duly authorised committee thereof. In the event of an early closure or extension of this Issue, our Company shall ensure that notice of the same is provided to the prospective investors through an  advertisement in all the newspapers in which pre-issue advertisement has been given on or before such earlier or initial date of Issue closure. For further details please refer to the chapter titled “Issue Related Information” on page 189 of the Prospectus

 ALLOTMENT ON FIRST CUM FIRST SERVE BASIS

As per the SEBI Operational Circular, the allotment in this Issue is required to be made on the basis of date of upload of each application into the electronic book of the Stock Exchanges. However, from the date of oversubscription and thereafter, the allotments will be made to the applicants on proportionate basis.

For further details, please refer to the Prospectus dated May 12, 2022 available on the website of Issuer at www.navifinserv.com, on the website of the BSE Limited at www.bseindia.com, National Stock Exchange Limited at www.nseindia.com, the respective websites of the lead managers at www.akgroup.co.in and www.jmfl.com and on the website of SEBI at www.sebi.gov.in.

Investment in debt securities involve a degree of risk and investors should not invest any funds in such securities unless they can afford to take the risk attached to such investments. Investors are advised to take an informed decision and to read the risk factors carefully before investing in this offering. For taking an investment decision, investors must rely on their examination of the issue including the risks involved in it. Specific attention of investors is invited to statement of risk factors contained under “Risk Factors” section of the Prospectus.

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