At a time when most Indian tech stocks are seeing big dips, Sachin Bansal-led fintech startup Navi Technologies is lining up to join the public markets. Navi became the latest Indian startup to file its draft red herring prospectus (DRHP) ahead of its IPO. The Navi IPO will undoubtedly be keenly watched by everyone in the startup and tech ecosystem, given that Bansal has been such a key figure in the Indian startup story.
The company’s plans to go public comes despite its inability to acquire an universal banking licence application, which has been in the works since 2018. While the plans for the banking licence will undoubtedly be ticking away in the background, Bansal is now tasked with proving the company’s value as a worth investment for public market investors, which may prove to be a tall task in the current climate.
So what exactly is Navi banking on as it goes for a public listing? Here’s what we can find from the DRHP:
Navi IPO: Key Figures
The Bengaluru-based fintech company is looking to raise INR 4,020 Cr ($530 Mn) through the IPO. The DRHP states it will attempt to raise INR 3,350 Cr via a fresh issue of equity, besides and another INR 670 Cr is likely to be raised in a pre-IPO round, which will reduce the size of the fresh issue.
Navi has appointed Axis Capital, BofA Securities, Credit Suisse, Edelweiss and ICICI Securities as the book-running managers for the issue.
Much of the attention around the IPO will be due to the fact that Bansal has been such a pivotal figure in the Indian tech story, and with Navi, his second innings after the Flipkart exit, he’s once again attempting to create a $100 Bn business. Besides Bansal, the company has built an interesting board which features some veterans from the Indian banking industry. This is just a hint of Navi’s larger ambitions.
The funds raised will be used to invest INR 2,370 Cr in Navi Finserv (NFPL) and another INR 150 Cr in Navi General Insurance Limited (NGIL). The rest of the amount has been saved for use in general corporate purposes.
Founded by Bansal and his former Flipkart colleague Ankit Agarwal in 2018, Navi operates in lending, general insurance, mutual funds and microfinance. Navi offers health insurance cover ranging from INR 2 Lakh to INR 1 Cr for individuals and families. It also launched a monthly subscription insurance product instead of the usual annual policies that most insurance providers offer, with these policies starting at INR 240 per month.
Navi’s promoter and cofounder Bansal is the largest shareholder of the company holding a 97.77% stake in the company, which immediately sets Navi apart from other startups that went public, where promoters typically had a lower stake in the company, with plenty of other investors crowding the captable.
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