Sachin Bansal' Navi Finserv to raise up to Rs 500Cr through public issue of NCDs

Flipkart Co-founder Sachin Bansal's digital lending startup Navi Finserv, which is preparing for an Initial Public Offering (IPO), is set to raise up to Rs 500 crore through the issuance of secured and redeemable non-convertible debentures (NCDs), making it the second debt issue after it raised about Rs 600 crore in May 2022.

According to the company, The public offering begins Monday, July 10, and is scheduled to close on July 21, although it could end earlier.

The fintech startup said the new NCDs issue will present up to five series of investment options, each with different tenures: 18 months, 27 months, and 36 months.

Navi has revealed the expected annual returns for these investment options, ranging from 10.18% for the first series to 11.01% for the fourth and fifth series and plans to make monthly interest payments, except for the third and fifth series, which will receive annual payments.

The allocations for the NCDs have been divided among various categories of investors: Qualified Institutional Buyers (QIBs) and corporates will each receive 20%, while High Networth Individuals (HNIs) and retail investors will each get 30%.

The debenture issue has been rated as 'A Stable' by both Credit Rating Information Services of India Limited (CRISIL) and India Ratings. JM Financials acted as the Lead Manager for the issuance, the company said in a statement.

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