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Sachin Bansal’s Navi Gets Sebi’s Approval To Float IPO Worth Rs 3,350 Crore

The company filed the Draft Red Herring Prospectus (DRHP) in March this year to issue Rs 3,350 crore via a fresh issue of shares

Sachin Bansal’s Navi Gets Sebi’s Approval To Float IPO Worth Rs 3,350 Crore
POSTED ON September 13, 2022 8:02 PM

Sachin Bansal’s financial services start-up Navi has received approval from the security and exchange of India (Sebi) for an initial public offering (IPO) worth Rs 3,350 crore. The company filed the Draft Red Herring Prospectus (DRHP) in March this year to issue Rs 3,350 crore via a fresh issue of shares. Navi would be the third financial services start-up to float an IPO. Paytm and Policy Bazaar made their stock market debut in 2021. 

As per reports, the Bengaluru-based start-up had appointed Axis Capital, BofA Securities, Credit Suisse, Edelweiss, and ICICI Securities as the book-running managers. According to the DRHP, while Rs 2,370 crore will be utilized for Navi Finserv Limited (NFL), Rs 1,090 crore will be utilized for Navi General Insurance Limited (NGIL). NGIL, which was erstwhile known as DHFL General Insurance Limited was acquired by Navi in February 2020. 

Bansal, who is also the co-founder of ecommerce platform Flipkart, owns a 97.77 per cent stake in the company, whereas Ankit Agrawal, co-founder of Navi holds a 0.98 per cent stake in the company. As per reports, the IPO will not have an offer for sale (OFS) for shareholders. 

Founded in 2018, Navi has eight subsidiaries in the full-stack financial service sector and has sanctioned more than Rs 9,000 crore worth loans, the company claims. According to the company’s financial statements, NFL registered a loss of Rs 66.9 crore in the revenue from operations slumped at Rs 457 crore in FY22, whereas the company registered a profit of Rs 22.91 in the first quarter of FY23. 

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