navi applied sciences: Sachin Bansal’s Navi Technologies receives Sebi nod for Rs 3,350 crore IPO

Navi, led by Flipkart co-founder Sachin Bansal, had filed a draft prospectus with Sebi in March for a Rs 3,350 crore IPO by recent issuance of shares.

An remark letter was issued to Navi on September 5, in line with Sebi’s web site. Navi is contemplating a pre-IPO placement of as much as Rs 670 crore, in line with the draft papers.

It is anticipated to make use of the cash from the IPO to speculate throughout subsidiaries, Navi Finserv Pvt Ltd (NFPL) and Navi General Insurance Ltd (NGIL), and for normal company functions.

The firm had stated it will make investments Rs 2,370 crore in its non-bank Navi Finserv and Rs 150 crore in its normal insurance business.

Bansal cofounded Navi in 2018 and has invested round Rs 4,000 crore into the entity until date. He will not be anticipated to dilute his stake within the IPO.

Navi Technologies didn’t reply to ET’s requests for remark until press time Monday.

The Sebi-nod comes at a time when Navi Finserv has
reported a maiden revenue of Rs 22.9 crore for the quarter led to June, as per the corporate’s filings. It had posted a web lack of Rs 4.3 crore for the fiscal fourth quarter ended March 31, 2022.

Nearly 40% of these availing of a mortgage on the Navi Finserv platform are repeat clients.

Navi Finserv’s business – which incorporates its money, house and microfinance lending operations – contributes virtually 80-90% to the group’s quarterly income. It additionally represents virtually 78% of the group’s total belongings underneath administration.

Navi’s complete belongings underneath administration from lending stood at Rs 7,076.5 crore for the June quarter.

It had reported an total lack of Rs 66.9 crore in FY22, after reporting a revenue of Rs 71.1 crore in FY21. Group income additionally fell to Rs 459.8 crore in FY22 from Rs 780 crore a 12 months in the past.

The Reserve Bank of India (RBI) rejected Navi’s banking licence utility, together with these of different candidates, in May. It had utilized for the licence by group agency Chaitanya India Fin Credit.

The firm will assess if the regulator is open to having new entrants within the banking sector earlier than reapplying for a licence, ET
reported on September 12.

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