Navi Finserv seeks ₹600 Cr via NCD issue to fuel growth

13 Feb 2024 , 02:59 PM

The Navi Finserv group, managed by Sachin Bansal, intends to raise up to ₹600 Crore by issuing new bonds that are non-convertible debentures (NCDs). A green shoe option of up to ₹300 Crore will be included in the total bond issuance size in order to maintain oversubscription.

The subscription period for the issue will run from February 26 to March 7, 2024, with the allocation process taking place on a first-come, first-served basis.

Crisil Ratings has given the secured NCDs a ‘A’ rating and a ‘Stable’ outlook.

Chief Executive Officer and Executive Chairman of Navi Finserv Sachin Bansal made the following statement in response to the launch: ‘As a tech-driven financial products and services company, we believe our digital lending process is one of the key differentiators driving business growth.’ In the long run, we want to provide our customers with an integrated ecosystem of financial services by leveraging technology and data science capabilities. We also want to keep expanding our footprint throughout India and launching new product lines.

The most recent bond offering is Navi Finserv’s third capital increase in the previous two years via rated, listed, and secured NCDs. The company raised about ₹495 Crore in FY23 and ₹481 Crore in FY24 by completing its first Public Issue I and Public Issue II of secured, rated, listed, and redeemable non-convertible debentures.

Navi Finserv is a wholly-owned subsidiary of Navi Technologies Ltd (NTL) and a non-banking financial corporation (NBFC) registered with the Reserve Bank of India. It is classified as a ‘NBFC-middle layer.’

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