14-Feb-2024
2 mins read
Navi Finserv announced plans to secure Rs 600 crore by issuing non-convertible debentures (NCDs), as per a company statement released. The offered debentures will come with maturity periods of 18, 27, and 36 months, featuring annual yields between 10.4% and 11.19%. NCDs serve as a way for substantial corporations to gather funds from the public over extended durations.
Previously, the company successfully garnered approximately Rs 950 crore via two separate NCD issuances. This current issuance is scheduled to commence on February 26. Recent public records reveal that Navi Finserv achieved a net income of Rs 172 crore for the financial year ending in 2023 from a total revenue of Rs 1,377 crore. At the close of the last financial year, the company’s total assets under management were reported to be Rs 9,788 crore.
Navi Finserv Limited Product Portfolio
Founded in 2012, Navi Finserv Limited operates as a non-deposit-accepting NBFC of significant systemic importance under the regulation of the RBI. This entity is a fully owned subsidiary of Navi Technologies Limited. Initially named Chaitanya Rural Intermediation Development Services Private Limited, the company has rebranded and expanded its services.
Navi Finserv provides digital financial solutions, including personal, home, and real estate loans, accessible through its Navi app. Emphasising a mobile-first approach, it offers streamlined processes for obtaining personal and home loans directly via the application.
Moreover, Navi Finserv has innovated with the creation of the Navi Lending Cloud, a proprietary, cloud-based platform engineered for instantaneous lending collaborations. This platform empowers partners to instantly assess borrowers, set loan terms, and manage real-time settlements and collections. Additionally, it simplifies the process for direct portfolio management, facilitating efficient pool selection and due diligence procedures.
As of the end of September 2023, Navi Finserv boasted a workforce of 955 employees, highlighting its growth and expansion in the financial services sector.
Financial Performance of Navi Finserv Limited (In Rs Crore)
Between the financial years ending March 31, 2023, and March 31, 2022, Navi Finserv Limited experienced substantial growth in its financial performance. The company’s revenue saw an impressive surge of 153.52%, while its profit after tax (PAT) skyrocketed by 1902.04%.
| Period Ended | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 12,523.95 | 6,312.72 | 4,401.07 |
| Revenue | 2,078.55 | 819.89 | 565.24 |
| Profit After Tax | 264.16 | -14.66 | 118.17 |
| Reserves and Surplus | 2,153.99 | 1,080.52 | 1,010.85 |
Important Details of Navi Finserv Limited NCD 2024
| Issue Open | February 26, 2024 – March 7, 2024 |
| Security Name | Navi Finserv Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 300 Crores |
| Issue Size (Oversubscription) | Rs 300 Crores |
| Overall Issue Size | Rs 600 Crores |
| Issue Price | Yet to be announced |
| Face Value | Rs 1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE, NSE |
| Credit Rating | CRISIL A/Stable by CRISIL. |
| Tenor | 18, 27 and 36 months |
| Series | Series I to V |
| Payment Frequency | Monthly and Annually |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Catalyst Trusteeship Limited |
Coupon rates for Navi Finserv Limited NCD 2024
| # | Series 1 | Series 2 | Series 3 | Series 4 | Series 5 |
| Frequency of Interest Payment | Monthly | Monthly | Annual | Monthly | Annual |
| Nature | Secured | Secured | Secured | Secured | Secured |
| Tenor | 18 Months | 27 Months | 27 Months | 36 Months | 36 Months |
| Coupon (% per Annum) | 10.00% | 10.40% | 10.90% | 10.65% | 11.19% |
| Effective Yield (% per Annum) | 10.47% | 10.91% | 10.94% | 11.19% | 11.19% |
| Amount on Maturity (In Rs) | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 |
NCD Allocation Ratio for Navi Finserv Limited
| Category | NCDs Allocated |
| Institutional | 20% |
| Non-Institutional | 25% |
| HNI | 25% |
| Retail | 30% |
NCD Rating of Navi Finserv Limited
The non-convertible debentures (NCDs) set to be issued in this offering have received a CRISIL A/Stable rating from CRISIL.
Company Promoters of Navi Finserv Limited NCD 2024
The promoter of the company is Navi Technologies Limited.
The Objective of the Navi Finserv Limited NCD 2024
The net proceeds from the issuance are earmarked by the company for specific financial strategies. These include using the funds for further lending and financing activities, as well as for the repayment of the company’s current loans and borrowings. Additionally, a portion of the proceeds will be allocated for general corporate objectives.
Lead Managers for Navi Finserv Limited NCD 2024
The lead manager for VNavi Finserv Limited NCD 2024 is Jm Financial Limited.
How to Apply for Navi Finserv Limited NCD 2024
Wait for the NCD to open for subscription, then click here to apply for the Navi Finserv Limited NCD 2024 with Bigul.
How to Check the Allotment Status of Navi Finserv Limited NCD 2024
The Navi Finserv Limited NCD 2024 registrar is Link Intime India Private Ltd. Click here to check your allotment status.
FAQs
- What is the issue size of Navi Finserv Limited NCD 2024?
The base issue size is Rs 300 Crores, with an option to retain oversubscription up to Rs 300 Crores, totalling Rs 600 Crores.
- What are the tenors and interest rates offered by Navi Finserv Limited NCD 2024?
Navi Finserv is offering NCDs with tenors of 18, 27, and 36 months, with annual yields ranging from 10.4% to 11.19%.
- How can one apply for Navi Finserv Limited NCD 2024?
Investors can apply for the NCDs once the issue opens for subscription on February 26, 2024. Applications can be made online through financial platforms like Bigul.
- How is the NCD allocated to investors?
The NCDs are allocated on a first-come, first-served basis across different categories: Institutional (20%), Non-Institutional (25%), HNI (25%), and Retail (30%).
- What is the credit rating of Navi Finserv Limited NCD 2024?
The NCDs have been rated CRISIL A/Stable by CRISIL, indicating a stable outlook.
- What are the objectives of raising funds through Navi Finserv Limited NCD 2024?
The net proceeds are intended for onward lending, financing, repayment of existing loans and borrowings, and for general corporate purposes.
- Who is the lead manager for the Navi Finserv Limited NCD 2024?
The lead manager for the NCD issue is JM Financial Limited.
- How to check the allotment status of Navi Finserv Limited NCD 2024?
The Navi Finserv Limited NCD 2024 registrar is Link Intime India Private Ltd. Click here to check your allotment status.
- How to Apply for Navi Finserv Limited NCD 2024?
Wait for the NCD to open for subscription, then click here to apply for the Navi Finserv Limited NCD 2024 with Bigul.
- Who are the promoters of Navi Finserv Limited NCD 2024?
The promoter of the NCD issue is Navi Technologies Limited.