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
Bengaluru, May 17, 2022: 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 si mple, 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 cust omers 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 debentu res, commercial papers and, securitisation instruments such as PTCs.
About Navi Group:
Co-founded by Sachin Bansal and Ankit Agarwal, the Navi group offers a range of financial services and products such as Personal Loans, Home Loans, Retail Health Insurance and Mutual Funds.
NCDs in the public issue will be allotted on a first-come first serve basis and thereafter on proportionate basis, i.e. full allotment of the NCDs to the Applicants on a first come first basis up to the date falling 1 (one) day prior to the date of oversubscription and proportionate allotment of NCDs to the applicants from the date of overs ubscription.
* Yield for 27 months monthly payment option. Please refer to the prospectus for further details (https://www.navifinserv.com/prospectus)
This Issue shall remain open for subscription on Working Days from 10 a.m. to 5 p.m. (Indian Standard Time) during the period indicated above, except that this Issue may close on such earlier date or extended date (subject to a period of maxi mum of 30 days from the date of Prospectus) as may be decided by the Board of Directors of our Company or a duly authorised committee thereof. In the event of an early closure or extension of this Issue, our Company shall ensure that notice of the same is provided to the prospective investors through an advertisement in all the newspapers in which pre-issue advertisement has been given on or before such earlier or initial date of Issue closure. For further details please refer to the chapter titled “Issue Related Information” on page 189 of the Prospectus
ALLOTMENT ON FIRST CUM FIRST SERVE BASIS
As per the SEBI Operational Circular, the allotment in this Issue is required to be made on the basis of date of upload of each applica tion into the electronic book of the Stock Exchanges. However, from the date of oversubscription and thereafter, the allotments will be made to the applicants on proportionate basis.
For further details, please refer to the Prospectus dated May 12, 2022 available on the website of Issuer at www.navifinserv.com, on the website of the BSE Limited at www.bseindia.com, National Stock Exchange Limited at www.nseindia.com, the respective websites of the lead managers at www.akgroup.co.in and www.jmfl.com and on the website of SEBI at www.sebi.gov.in.
Investment in debt securities involve a degree of risk and investors should not invest any funds in such securities unless they can afford to take the risk attached to such investments. Investors are advised to take an informed decision and to read the risk factors carefully before investing in this offering. For taking an investment decision, investors must rely on their examination of the issue including the risks involved in it. Specific attention of investors is invited to statement of risk factors contained under “Risk Factors” section of the Prospectus.
Disclaimer:
NAVI FINSERV LIMITED, subject to market conditions and other considerations, is proposing a public issue of Secured, Listed, Rate d, Redeemable Non-Convertible Debentures and has filed the Prospectus dated May 12, 2022 with the Registrar of Companies, Bengaluru, Karnataka, BSE, NSE and SEBI. The Prospectus dated May 12, 2022 are also available on the website at www.navifinserv.com, on the website of the BSE Limited at www.bseindia.com, National Stock Exchange Limited at www.nseindia.com, the respective websites of the lead managers at www.akgroup.co.in and www.jmfl.com and on the website of SEBI at www.sebi.gov.in. Investors proposing to participate in the Issue should invest only on the basis of information contained in the Prospectus dated May 12, 2022. Investors should note that investm ent in NCDs involves a high degree of risk and for details relating to the same, please refer to the Prosp ectus dated May 12, 2022, including the section “Risk Factors” beginning on page 18 of the Prospectus and “Material Developments” on page 314 of the Prospectus before making an investment in the Issue.
Disclaimer Statement of India Ratings & Research Pvt Ltd
All credit ratings assigned by India Ratings are subject to certain limitations and disclaimers. Please read these limitations and disclaimers by following this link: https://www.indiaratings.co.in/rating-definitions.
In addition, rating definitions and the terms of use of such ratings are available on the agency’s public website www.indiaratings.co.in. Published ratings, criteria, and methodologies are available from this site at all times. India ratings’ code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance, and other relevant policies and procedures are also available from the code of conduct section of this site.
CREDIT RATING:
The NCDs proposed to be issued pursuant to the Issue have been rated IND A/ Stable by India Ratings & Research Pvt Ltd for an amount of up to ` 6,000 million by way of its letter dated April 12, 2022 and revalidation letter dated May 2, 2022. Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk. The rating provided by India Ratings & Research Pvt Ltd may be suspended, withdrawn or revised at any time by the assigning rating agency and should be evaluated independently of any other rating. These ratings are not a recommendation to buy, sell or hold securities and investors should take their own decisions. The rating given by the Credit Rating Agency is valid as on the date of the Prospectus and shall remain valid until the ratings are revised or withdrawn. These ratings are subjected to a periodic review during which they may be raised, affirmed, lowered, withdrawn, or placed on Rating Watch. The Credit Rating Agency’s website will have the latest information on all its outstanding ratings. In case of any change in credit ratings till the listing of NCDs, the Company will inform the investors through public notices/ advertisements in all those newspapers in which pre issue advertisement has been given. These ratings are not a recommendation to buy, sell or hold securities and investors should take their own decisions. For the rationale and press release for these ratings, see “General Information” and “Annexure B” of the Prospectus, beginning on page 53 and 320 of the Prospectus, respectively.
Disclaimer Clause of NSE
It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to the Offer Document for the full text of the ‘Disclaimer Clause of NSE”.
Disclaimer Clause of BSE
It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the Prospectus has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the Prospectus. The investors are advised to refer to the Prospectus for the full text of the Disclaimer clause of the BSE Limited.
DISCLAIMER CLAUSE OF USE OF BSE ELECTRONIC PLATFORM:
It is to be distinctly understood that the permission given by the Exchange to use their network and software of the Online system should not in any way be deemed or construed that the compliance with various statutory requirements approved by the Exchange; nor does it in any manner warrant, certify or endorse the correctness or completeness of any of the compliance with the statutory and other requirements nor does it take any responsibility for the financial or other soundness of this Company, its promoters, its management or any scheme or project of this Company.
It is also to be distinctly understood that the approval given by the Exchange is only to use the software for participating in the system of making the application process.
DISCLAIMER CLAUSE OF USE OF NSE ELECTRONIC PLATFORM:
It is to be distinctly understood that the permission given by National Stock Exchange of India Ltd. (NSEIL) to use their network and Online Platform for facilitating applications for public issue of debt securities shall not in any way be deemed or construed as compliance with statutory and other requirements by Navi Finserv Limited, LMs, etc. is cleared or approved by NSEIL; nor does it in any manner warrant, certify or endorse the correctness or completeness of any of the compliance with the statutory and other requirements nor does it take any responsibility for the financial or other soundness of this Issuer, its promoters, its management or any scheme or project of this Issuer.
It is also to be distinctly understood that the approval given by NSEIL should not in any way be deemed or construed that the prospectus has been cleared or approved by NSEIL; nor does it in any manner warrant, certify or endorse the correctness or completeness of any of the contents of this prospectus; nor does it warrant that the securities will be listed or will continue to be listed on NSEIL.
Disclaimer Statement of RBI
A copy of the Prospectus has not been filed with or submitted to the Reserve Bank of India (“RBI”). It is distinctly understood that the Prospectus should not in any way be deemed or construed to be approved or vetted by RBI. RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the Issuer or for the correctness of any of the statements or representations made or opinions expressed by the issuer and for discharge of liability by the Issuer. RBI neither accepts any responsibility nor guarantee for the payment of any amount due to any investor in respect of the proposed NCDs.
