Navi Finserv set to raise Rs 600 cr from Public Bond Sale

According to three people aware of the matter, Navi Finserv, which is founded by former co-founder of Flipkart Sachin Bansal, is aiming to raise 600 crores through a public bond offering. This is claimed to be the first such retail bond sale by a fintech company in India.

Navi which is a personal and home loan company is planning to diversify its credit portfolio through digital lending. The A-rated bonds will have a yield of up to 9.75 percent and a 27-month maturity. Another series with an 18-month maturity will pay 9.50 percent.

One of the sources, familiar with the development, stated, "The company has a digital retail interface, which can be improved via public issuance of bonds, even if a retail issue is a little more expensive than a private placement." 

The planned issuance's base size is 300 crore, with an option to retain up to an additional 300 crores in oversubscriptions. The bond sale will begin accepting subscriptions on May 23 and will end on June 10. Bonds will be traded on the BSE as well as the NSE.