Navi Finserv, a wholly owned subsidiary of Navi Technologies, has announced a public issue of non-convertible debentures (NCDs) with a base issue of Rs 600 crore and the option to retain an additional subscription of Rs 300 crore. Crores
The issue will open on May 23 and close early on June 10 or with the option of extension.
The NCD has a rating of A (stable), protected, rated, listed and redeemed by India Rating and Research. This rating is considered to be sufficient security for timely delivery of financial obligations. Such materials carry less debt risk, according to a statement from Navi Finserv.
Investors will have the opportunity to participate in various series of secured NCDs for a period of 18 months and 27 months with an effective yield of up to 9.80 per cent and a minimum application size of Rs 10,000, the statement added.
The company offers personal loans and home loans under the ‘Navi’ brand and has approved personal loans to more than 84 per cent of all Indian zip code customers. The company had a net worth of Rs 1,189.57 crore as on December 31, 2021 and maintained a unique debt of 2.1 times equity ratio till December 31, 2021.
Further, its net NPA is 0.08 percent (as of December 31, 2021), supported by the collection efficiency of 96.63 percent for personal loans disbursed from April 1, 2021 to December 31, 2021).
As on March 31, 2022, its outstanding debt on an individual basis of Rs 2774.98 crore was diversified across an array of instruments like NCD, sub-debt, term loans, market-linked debentures, commercial papers and securities instruments like PTC.
“The goal of the upcoming NCD issue is to raise funds for lending and financing. This will further diversify our borrowing profile and add more retail investors to our portfolio to complement the broad base of our institutional partners, ”said Ankit Agarwal, Managing Director, Navi Finserv.