Flipkart co-founder Sachin Bansal’s Navi Technologies Limited has received a green signal from the Securities and Exchange Board of India (SEBI) to get listed on the bourses via an initial public offering. The date and time of Navi Technologies IPO has not been decided yet. The company filed the draft papers for the IPO back in March this year.
In its Draft Red Herring Prospectus or DHRP, filed in March, Navi Technologies had sought to raise up to Rs 3,350 crore through a fresh issue of shares. As per a report by Moneycontrol, the IPO will have an offer for sale (OFS) by Bansal who holds a 97.39 per cent stake in the fintech.
According to the DHRP, the net proceeds from the Navi Technologies IPO will be used for investment into the company’s subsidiaries, Navi Finserv Private Limited (“NFPL”) and Navi General Insurance Limited (“NGIL”), and for general corporate purposes. “In addition, our Company expects to receive the benefits of listing of the Equity Shares on the Stock Exchanges, including enhancement of our Company’s brand name and creation of a public market for our Equity Shares in India,” it said in the draft IPO papers.
The company has proposed to invest Rs 23,700.00 million from the Net Proceeds into NFPL, while another Rs 1,500.00 million from the net proceeds will be invested into NGIL.
According to the previous plans, the Navi Technologies IPO was supposed to launch in June. However, the final dates have not been confirmed yet.
Navi Technologies is a tech-driven financial products and services company. Since the company’s incorporation, it has expanded offerings 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 the Pre-IPO Placement aggregating up to Rs 6,700.00 million. If the Pre-IPO Placement is undertaken, the size of the Fresh Issue will be reduced to the extent of such Pre-IPO Placement,” said the DHRP.
After moving out of Flipkart, Bansal – along with Ankit Agarwal – founded Navi in 2018.
As per its website, Navi is a digital lending app which provides loans of 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 book running lead managers to the public issue. To enter the microfinance segment, Navi had acquired Chaitanya India Fin Credit for Rs 739 crore in 2019. Chaitanya had also applied to Reserve Bank of India (RBI) for a universal banking licence.
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