IPO Update: Sachin Bansal’s Navi Technologies Files Draft Papers for Rs 3,350 Crore IPO

Navi Technologies, led by Sachin Bansal, has filed preliminary papers with SEBI to raise Rs 3,350 crore through an initial public offering (IPO).

According to the draft red herring prospectus (DRHP), the proposed IPO will be entirely through a new issue of equity shares, with no offer-for-sale (OFS). Flipkart co-founder Binny Bansal, who has invested approximately Rs 4,000 crore in Navi to date, is not diluting his stake in the IPO.

According to sources familiar with the situation, the initial share sale is expected to begin in June. According to the draft papers, the company may consider a Rs 670 crore pre-IPO placement. The size of the public issue will be reduced if such a placement is undertaken.

The IPO proceeds will be used to invest in subsidiaries Navi Finserv Pvt Ltd (NFPL) and Navi General Insurance Ltd (NGIL), as well as for general corporate purposes. Bansal co-founded Navi with Ankit Agarwal after leaving Flipkart in 2018.

Navi Technologies is a financial products and services company that is focused on technology. Since its inception, the company’s offerings under the “Navi” brand have grown to include personal loans, home loans, general insurance, and mutual funds. It also provides microfinance loans through a wholly-owned subsidiary under the brand “Chaitanya.”

According to its website, Navi is a digital lending app that offers loans of up to Rs 20 lakh in an instant, paperless process. The book running lead managers for the public offering are ICICI Securities, BofA Securities and Axis Capital, Credit Suisse Securities (India) Pvt Ltd, and Edelweiss Financial Services. Navi acquired Chaitanya India Fin Credit for Rs 739 crore in 2019 to enter the microfinance segment. Chaitanya had also applied for a universal banking licence with the Reserve Bank of India (RBI).