Navi Finserv Limited is planning to raise ₹ 600 crore through public issuance of Non-Convertible Debentures (NCDs)
● Includes a base issue size of ₹ 300 crore with an option to retain oversubscription upto ₹ 300 crore aggregating to ₹ 600 crore
● Proposed NCDs have been rated IND A/ Stable by India Ratings & Research Pvt Ltd
● Investors can get an effective yield of upto 9.8%* on their investment
● Issue opens on Monday, May 23, 2022
Chennai, Navi Finserv Limited (NFS), a wholly owned subsidiary of Navi Technologies Limited (Navi), today announced the public issue of Secured, Rated, Listed & Redeemable Non-Convertible Debentures (NCDs) amounting to ₹ 600 crore with a base issue of ₹300 crore and an option to retain over-subscription of another ₹300 crore. The issue will open on Monday 23rd May, 2022 and is scheduled to close on Friday, 10th June 10, 2022 with an option of early closure or extension.
The proposed NCDs have a rating of A (Stable) by India Ratings & Research Pvt Ltd. This rating is considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk.
Investors get an opportunity to participate in secured NCDs under various series for tenure of 18 months and 27 months with an effective yield of upto 9.80%* and a minimum application size of ₹10,000.
Speaking about the NCD issue, Ankit Agarwal, Managing Director of NFS said, “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. This is a secured instrument with A (stable) rating, a low application size and an effective yield of upto 9.80%*.
Sachin Bansal, Chairman & CEO of NFS added: “At Navi, our mission is to provide financial products that are simple, affordable and accessible. I believe that our customer centric and technology first approach along with our robust underwriting and collections capabilities adds value to Navi Finserv’s maiden public debt issue.”
NFS offers personal loans and home loans under the “Navi” brand and we have approved personal loans to customers across over 84% of all Indian pin codes. The Company’s net worth stood at Rs 11,895.72 million as on December 31, 2021 and maintained a comfortable standalone debt to equity ratio of 2.1x as on December 31, 2021.
NFS has maintained a strong asset quality reflected by its Net NPA of 0.08% (as on December 31, 2021), which is supported by a collections efficiency of 96.63% (for personal loans disbursed subsequent to April 1, 2021 till December 31, 2021). Its outstanding borrowings on a standalone basis of ₹27,749.76 million as of 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.