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Invest in Public Issue

Navi Finserv Limited


Opening Date

May 23, 2022

Closing Date

Jun 10, 2022

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Allotment

First Come
First Serve

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Credit Rating

IND A/Stable India Ratings & Research Pvt Ltd

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Base Issue

₹300 Crores

Greenshoe

₹300 Crores

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Highest Yield

9.80%

Min. Investment

₹10,000

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Issue Details

Essentials

Issue price

₹1,000

Face Value

₹1,000/ NCD

Issue Size

₹600 Crores

Minimum Investment

₹10,000 (10 NCDs)

Rating

IND A/Stable India Ratings & Research Pvt Ltd

Listing on

NSE and BSE

Issue Opening Date

May 23, 2022

Issue Closing Date

Jun 10, 2022

Mode of Issue

Public Issue

Registrar

Link Intime India Private Limited

Mode of allotment and Trading

Dematerialized

About the Issuer

Navi Finserv Limited (“NFL”, “Company”) was incorporated on February 14, 2012 and was acquired by the Promoter, Navi Technologies Limited (“NTL”), on October 23, 2019, which was ultimately transferred to NFL in March 2020. NFL’s Subsidiary, Chaitanya India Fin Credit Private Limited (“CIFCPL”) was acquired in March 2020 by the Promoter, NTL. Post this acquisition, the Company’s name was changed to Navi Finserv Private Limited and subsequently post conversion to public company, the Company’s name was changed to Navi Finserv Limited.

Competitive Strengths

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Better customer engagement and experience through Navi App.

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Extensive Reach.

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Strong Underwriting and Risk management model.

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Robust Collection Mechanisms.

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Diverse Borrowing Profile across fund raising mechanisms and lenders.

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Strong leadership backed by experienced management team and high corporate governance standards.

Objectives for IPO Issue

All monies received out of the Issue shall be credited/transferred to a separate bank account maintained with Public Issue Account Bank as referred to in Section 40 of the Companies Act, 2013.

The Issue Proceeds shall be utilized in compliance with various guidelines, regulations and clarifications issued by RBI, SEBI or any other statutory authority from time to time.

Source: Source: Prospectus dated May 12, 2022

Disclaimer: Disclaimer: Invest only after referring to the Prospectus dated May 12, 2022

Available Bonds Options

Series I II III IV
Frequency of Interest Payment
Monthly Annual Monthly Annual
Tenor in Months
18 Months 18 Months 27 Months 27 Months
Coupon Rate Category I/II/III & IV
9.20% 9.50% 9.40% 9.75%
Effective Yield Category I/II/III & IV
9.59% 9.57% 9.80% 9.77%
Amount of Maturity Category I/II/III & IV
₹ 1000.00 ₹ 1000.00 ₹ 1000.00 ₹ 1000.00

Allocation Ratios

Category Category I (Institutional) Category II (Non Instituttional) Category III (HNI) Category IV (Retail)
% Allocation 20% 20% 30% 30%
Allocation Amount in Crores (including greenshoe option) ₹ 120 Crores ₹ 120 Crores ₹ 180 Crores ₹ 180 Crores

Frequently Asked Questions

What is the Issue Size?

  • ₹ 300 Crores (Base Issue) with an option to retain oversubscription up to ₹ 300 Crores aggregating up to ₹ 600 Crores (Tranche I Issue Limit)

Credit Rating for the NCDs?

  • • IND A/ Stable by India Ratings & Research Pvt. Ltd. for an amount of up to ₹ 600 Crores by way of its letter bearing dated April 12, 2022 and revalidated by letter dated May 2, 2022.
  • Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations.

Security?

  • The principal amount of the NCDs to be issued together with all interest due and payable on the NCDs, thereof shall be secured by an exclusive charge by way of hypothecation of identified book debts of the Company, created in favour of the Debenture Trustee, as specifically set out in and fully described in the Debenture Trust Deed, such that a security cover to the extent of 110% of the outstanding principal amounts of the NCDs and all interest due and payable thereon is maintained at all times until the Maturity Date.

What is the face value/ Issue Price of the NCDs?

  • ₹ 1,000/- Per NCD

What is the frequency of interest payment?

  • Series I & III– Monthly Coupon
  • Series II, IV – Annual coupon

What is the minimum application amount?

  • ₹ 10,000/- (10 NCDs) and in multiple of ₹ 1,000/- (1 NCD) thereafter (for all the options of NCDs either taken individually or collectively).

Modes of Applying?

  • Application through the ASBA Process (for all applicants). Retail Individual applicant may use the UPI mechanism to block funds for application value up to INR 5 Lakhs submitted through the app/web interface of the Stock Exchange or through intermediaries (Syndicate members, Registered Stock Brokers, Registrar and Transfer agent and Depository Participants).

Who is not eligible to invest in the issue?

  • Applications from such persons and entities are liable to be rejected:
  • a) Minors without a guardian name* (A guardian may apply on behalf of a minor. However, Applications by minors must be made through Application Forms that contain the names of both the minor Applicant and the guardian);
  • b) Foreign nationals NRI inter-alia including any NRIs who are (i) based in the USA, and/or, (ii) domiciled in the USA, and/or, (iii) residents/citizens of the USA, and/or, (iv) subject to any taxation laws of the USA;
  • c) Persons resident outside India and other foreign entities;
  • d) Foreign Institutional Investors;
  • e) Foreign Portfolio Investors;
  • f) Non Resident Indians;
  • g) Qualified Foreign Investors;
  • h) Overseas Corporate Bodies**;
  • i) Foreign Venture Capital Funds; and
  • j) Persons ineligible to contract under applicable statutory/ regulatory requirements.
  • *Applicant shall ensure that guardian is competent to contract under Indian Contract Act, 1872
  • **The concept of Overseas Corporate Bodies (meaning any company, partnership firm, society and other corporate body or overseas trust irrevocably owned/held directly or indirectly to the extent of at least 60% by NRIs), which was in existence until 2003, was withdrawn by the Foreign Exchange Management (Withdrawal of General Permission to Overseas Corporate Bodies) Regulations, 2003. Accordingly, OCBs are not permitted to invest in the Issue.

Can the application be made on joint names?

  • Applications may be made in single or joint names (not exceeding three). In the case of joint Applications, all payments will be made out in favour of the first Applicant. All communications will be addressed to the first named Applicant whose name appears in the Application Form and at the address mentioned therein.

Listing?

  • The NCDs are proposed to be listed on BSE and NSE.

Basis of Allotment

  • Category I (Institutional) – 20% of the Issue Size
  • Category II (Non-Institutional)- 20% of the Issue Size
  • Category III (HNI) - 30% of the Issue Size
  • Category IV (Retail Individual) - 30% of the Issue Size

Can an applicant trade the NCDs in the market?

  • Yes. The NCDs will be listed on BSE and NSE. The trading of the NCDs shall be in dematerialized form only.

Can NRI Apply in this Issue?

  • No

Who are eligible to apply through ASBA?

  • All categories of eligible applicants can apply through ASBA mode.

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