Sachin Bansal-backed Navi Finserv aims to raise up to Rs 600 crore via NCDs

The issue will be open for subscription from February 26.

Sachin Bansal-led Navi Finserv is planning to raise up to Rs 600 crore through a new bond issue of non-convertible debentures (NCDs). The total bond issue size will include a green shoe option of up to Rs 300 crore to retain oversubscription.

The issue will be open for subscription from February 26, to close on March 7, 2024 and the allotment will be done on a first-come first-serve basis.

The secured NCDs have been assigned 'A' rating with a 'Stable' outlook by Crisil Ratings. The issue will have tenors of 18, 27, and 36 months and offer effective yields ranging from 10.47 per cent to 11.19 per cent per annum. The funds raised through the new bond issue will be used for onward lending, financing, loan repayment, and general corporate purposes.

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Commenting on the launch, Sachin Bansal, Executive Chairman and Chief Executive Officer, Navi Finserv said: “Being a tech-driven financial products and services company, we believe our digital lending process is one of the key differentiators driving business growth. Our long-term focus is on utilising technology and data science capabilities to enhance our customer experience, offering them an integrated ecosystem of financial services, while we also continue to increase reach across India and foray into new product lines.”

The latest bond issuance is Navi Finserv’s third capital raise through secured, rated, and listed NCDs in the past two years. The company concluded its maiden Public Issue I and Public Issue II of secured, rated, listed, and redeemable non-convertible debentures and raised approximately Rs 495 crore in FY23 and Rs 481 crore in FY24.

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Navi Finserv is a non-banking financial corporation (NBFC) registered with the Reserve Bank of India and is categorised as an ‘NBFC-middle layer’ and a wholly-owned subsidiary of Navi Technologies Ltd (NTL).