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Navi Finserv to raise Rs 600 crore through public issue of NCDs 

Navi Finserv to raise Rs 600 crore through public issue of NCDs 

Investors can get an effective yield of up to 9.8 per cent on their investment with the NCDs rated IND A/ Stable by India Ratings & Research; issue will open on May 23.

Navi Finserv is a wholly-owned subsidiary of Sachin Bansal's Navi Technologies Navi Finserv is a wholly-owned subsidiary of Sachin Bansal's Navi Technologies

Navi Finserv, a wholly-owned subsidiary of Navi Technologies, has announced the public issue of Non-Convertible Debentures (NCDs) amounting to Rs 600 crore with a base issue of Rs 300 crore and an option to retain over-subscription of another Rs 300 crore.  

The issue will open on May 23 and close on June 10 with an option of early closure or extension. 

The secured, rated, listed & redeemable NCDs have a rating of A (Stable) by India Ratings & Research. This rating is considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk, said a statement by Navi Finserv. 

Investors will get an opportunity to participate in secured NCDs under various series for tenure of 18 months and 27 months with an effective yield of up to 9.80 per cent and a minimum application size of Rs 10,000, added the statement. 

The company offers personal loans and home loans under the ‘Navi’ brand and has approved personal loans to customers spread over 84 per cent of all Indian pin codes. The company’s net worth stood at Rs 1,189.57 crore as on December 31, 2021 and maintained a standalone debt to equity ratio of 2.1 times as on December 31, 2021. 

Further, it has a net NPA of 0.08 per cent (as on December 31, 2021), supported by a collections efficiency of 96.63 per cent for personal loans disbursed subsequent to April 1, 2021 till December 31, 2021). 

Its outstanding borrowings on a standalone basis of Rs 2774.98 crore as on March 31, 2022 was diversified across an array of instruments such as NCDs, sub-debt, term loans, market-linked debentures, commercial papers and securitisation instruments such as PTCs. 

“The upcoming NCD issue aims to raise funds for onward lending and financing purposes. This will further diversify our borrowing profile and add more retail investors to our portfolio to complement our wide base of Institutional partners,” said Ankit Agarwal, Managing Director, Navi Finserv.