[ad_1]
Navi Technologies is planning to raise Rs 4,000 crore in fresh capital through an initial public offering (IPO). The company is expected to file its draft red herring prospectus with market regulator Sebi this week, said people in the know.
ICICI Securities, BofA and Axis Capital are the investment banks handling the share sale.
The company declined to comment on a query sent by Business Standard on its IPO plans.
Navi Tech is co-founded and promoted by Flipkart co-founder Sachin Bansal.
Sources said the IPO could hit the market during the first quarter of next financial year. The company will use the proceeds to fuel its growth.
Navi Tech is a tech-driven financial products and services company. Its key offerings include personal loans, housing loans, general insurance and mutual funds (MFs).
Founded in 2018, the company with its digital-first approach has tried to disrupt the businesses it operates in. For instance, in the MF space it has launched the exchange traded funds (ETFs) with lowest fee structure. In personal loans, it instantly offers loans of up Rs 20 lakh through a completely paperless process.
Till date, Bansal has invested around Rs 4,000 crore into the firm.
In 2019, Navi had acquired Chaitanya India Fin Credit for Rs 739 crore and entered the microfinance segment. Chaitanya had also applied for a universal banking licence from the Reserve Bank of India (RBI). Navi’s loan book size is about Rs 3,500 crore.
Navi MF had acquired assets of Essel MF in 2021. The data from Association of Mutual Funds in India (Amfi) shows that Navi MF has assets of Rs 930 crore as of December quarter.
The company turned profitable in FY21, posting a consolidated profit of Rs 71 crore with a total income of Rs 780 crore and expenditure of Rs 673 crore.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
[ad_2]
Source link