Navi Technologies planning to raise Rs 4,000 crore through an IPO

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Navi Technologies planning to raise Rs 4,000 crore through an IPO
08 Mar 2022
6 min read

News Synopsis

Navi Technologies is planning to raise new capital of Rs 4,000  through an initial public offering (IPO). The company plans to submit a draft red herring prospectus to market regulator Sebi this week.

The company can launch its IPO during the first quarter of the upcoming financial year. The raised capital will be used to fuel its growth in the market. Navi Technologies’ key offerings include personal loans, housing loans, general insurance and mutual funds.

Founded in 2018, the company has sought to disrupt the businesses that operate with a digital-first approach. For example, MF Space has launched an Exchange Traded Fund (ETF) with the lowest fee structure. For personal loans, it offers immediate loans up to Rs 20 lakh through a completely paperless process.

In 2019, Navi entered the microfinance segment with the acquisition of Chaitanya India Fin Credit for Rs 739 crore. Chaitanya also applied for a universal banking license from the Reserve Bank of India (RBI). The size of the navigation loan book is about  3,500 crore rupees.

According to the data of the Association of Mutual Funds in India, Navi MF has assets of Rs 930 crore as of the December quarter. It acquired assets of Essel MF in 2021. The company turned profitable in FY21, with a consolidated profit of Rs 71 crore with a total income of Rs 780 crore and an expenditure of Rs 673 crore.

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