sachin bansal managed financial services companyfiled the draft Red Herring prospectus for raise Rs 3,350 crore in public markets with SEBI today.
The company, which started as a lending business in 2018 and has a present in insurance, asset management and microfinance, will issue new shares as part of its initial public offering. The company will invest Rs 2,370 crore in proceeds from its lending business, Navi Finserv Private Limited (NFPL) and Rs 1,500 crore in its insurance subsidiary, Navi General Insurance Limited (NGIL)we specify to the DRHP.
Your story first reported the developments on March 7.
Navi named ICICI Securities, BofA Securities, Axis Capital, Credit Suisse Securities (India) and Edelweiss Financial Services as lead managers for the public question.
Here are some key takeaways from Navi HDRD:
- In its DRHP, Navi Technologies stated that it could allocate up to 60% of the Qualified Institutional Buyers (QIB) share to core investors based on consultation with its book managers. One-third of the lead investor portion will be reserved for domestic mutual funds.
- Navi Technologies currently has 10 subsidiaries including Anmol Como Broking, BACQ Acquisitions, Chaitanya India Fin Credit (CIFCPL), MavenHive Technologies, Navi AMC, NFPL, NGIL, Navi Investment Advisors, Navi Securities and Navi Trustee. Of these, seven were acquired by Navi Technologies as part of its inorganic growth strategy.
- The company also plans to expand its product portfolio by launching adjacent loan and insurance products to capture a larger share of the customer portfolio. the the company’s core business includes credit (personal loans, home loans, others), health insurance, asset management and microfinance through CIFCPL.
- Credit remains the mainstay of Navi’s overall revenues, with a Contribution of 43.97% for the nine-month period ending December 31, 2021. Contribution from lending business, which includes personal loans, home loans and others, amounted to Rs 333.57 crore for l 2020-21 financial year, i.e. 42.77% contribution to overall figures.
- Almost 26.32% of assets under management (AUM) for NFPL for the 2020-21 financial year came from clients in the low income group earning up to Rs 25,000 per month. Approximately 1.53% of NFPL assets under management attributable to these clients have defaulted obligations during the period.
- Of the society the microfinance company, CIFCPL, contributed 32.5% of its total income for the nine-month period ending December 31, 2021. Microfinance’s contribution to total income was Rs 231.5 crore or 29.68% for the financial year 2020-21. CIFCPL has also applied for a Universal Banking License from RBI.
- For the 2020-21 financial year, Navi earned 19.73% of gross direct premium income from its health insurance product, a contribution that rose to 28.20% for the nine-month period. ending December 31, 2021.
- HRD also mentions a show cause notice issued to Sachin Bansal on July 1, 2021, under FEMA’s provisions regarding foreign investment in Flipkart. It says Sachin Bansal divested a 100% stake in Flipkart from 2018 and has no association with the company’s business.