Flipkart co-founder Sachin Bansal’s lending startup Navi Finserv has planned to raise up to ₹600 crore through a new bond issue of Non-Convertible Debentures (NCDs). The total bond issue size of up to ₹600 crore will include a green shoe option of up to ₹300 crore to retain oversubscription.
The issue will be open for subscription between February 26, 2024 to March 7, 2024.
The same will have tenors of 18, 27 and 36 months. It will offer effective yields ranging from 10.47% to 11.19% per annum.
| 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 ₹) | ₹ 1,000.00 | ₹ 1,000.00 | ₹ 1,000.00 | ₹ 1,000.00 | ₹ 1,000.00 |
(Source: Chittorgarh)
The secured, rated, listed NCDs assigned a CRISIL A/stable rating by CRISIL Ratings.
Commenting on the launch, Sachin Bansal, Executive Chairman & CEO, Navi Finserv Limited said, “The funds raised through this will be used for onward lending, financing, loan repayment, and other general corporate purposes.”
He further added, “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 2 years.
The company concluded its maiden public issue I and public issue II of secured, rated, listed, and redeemable non-convertible debentures under the SEBI NCS regulations and raised approximately ₹495 crore in FY 2023 and ₹481 crore in FY 2024.
(Edited by : C H Unnikrishnan)
First Published: Feb 15, 2024 10:16 AM IST
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