The proposed IPO is done entirely through a new issue of shares and there will be no offer for sale (OFS), according to the Draft Diversion Prospectus (DRHP). Flipkart co-founder Bansal, who has invested around Rs 4,000 crore in Navi till date, is not diluting his stake in the IPO.
According to people familiar with the matter, the first share sale is expected to open in June. According to the draft documents, the company could explore an aggregate pre-IPO placement at Rs 670 crore. If such a placement is undertaken, the size of the public issue will be reduced.
Proceeds from the IPO will be used to invest in subsidiaries – Navi Finserv Pvt Ltd (NFPL) and Navi General Insurance Ltd (NGIL) – and for general purposes. After leaving Flipkart, Bansal – along with Ankit Agarwal – founded Navi in 2018.
Navi Technologies is a technology-driven financial products and services company. Since the company’s incorporation, it has expanded its offerings under the “Navi” brand to include personal loans, home loans, general insurance and mutual funds. It also offers microfinance loans through a wholly-owned subsidiary, branded “Chaitanya”.
According to its website, Navi is a digital lending app that provides loans of up to Rs 20 lakh instantly through a completely paperless process. ICICI Securities, BofA Securities and Axis Capital, Credit Suisse Securities (India) Pvt Ltd and Edelweiss Financial Services are the lead managers of the public issue. To enter the microfinance segment, Navi had acquired Chaitanya India Fin Credit for Rs 739 crore in 2019. Chaitanya had also applied to the Reserve Bank of India (RBI) for a universal banking license.