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Flipkart-founder Sachin Bansal's company Navi Technologies Limited (NTL), has received the approval of markets regulator SEBI to launch its IPO.
For the unversed, NTL is a company founded by Sachin Bansal in 2018. It has two main subsidiaries: Navi Finserv Pvt. Ltd. (NFPL) & Navi General Insurance Ltd. (NGIL). It also has two other parts: Chaitanya India Fin Credit & Navi AMC.
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NFPL is a non-deposit-taking NBFC registered with RBI and is a wholly-owned subsidiary of NTL. It offers financial products like personal and home loans under the Navi brand. The company has a goal of meeting the borrowing needs of middle-income people and is one of the lending apps in the country.
Shortly after NFPL, NGIL was launched which provides insurance services to over 12 lakh customers. It offers health, motor, property, commercial, and gadget insurance solutions.
The approval comes 6 months after the company filed its DRHP with the market regulator. The IPO size is estimated to be around Rs 3,350 crores and will be a 100% fresh issue. This means that Sachin Bansal, who owns roughly 97.39% of the company, will not be diluting his stake.
According to the DRHP, the company plans to invest Rs 2,370 crores in NFPL and Rs 150 crores in NGIL, as well as other general corporate purposes. Moreover, the company is also considering a pre-IPO placement of Rs 670 crores, thereby reducing the overall issue size.
The company reported Rs 66.9 crores in FY22 as opposed to profits reported in FY21 to the tune of Rs 71.1 crores. Moreover, the company's revenues registered a 41% YoY decline to stand at Rs 459.8 crores.
Axis Capital, BofA Securities, Credit Suisse Securities, Edelweiss Financial Services, and ICICI Securities are the lead book running lead managers for the issue.
Article by Aman Agarwal.
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