Business
Sachin Bansal-Owned Navi Technologies Files IPO Papers; To Raise Rs 4000 Crore Through Public Issue: Report
Navi Technologies
Flipkart-fame Sachin Bansal’s Navi Technologies is likely to file the draft red herring prospectus (DRHP) for its initial public offering (IPO) this week.
The financial services company will go public in June and will raise Rs 4000 crore through the IPO.
The public issue will be completely via the issuance of new shares. It will not have any offer-for-sale (OFS) component.
Bansal apparently invested Rs 4000 crore of his own capital in Navi Technologies. Currently, he holds a 97 per cent stake in the company and will retain majority control even after the IPO.
“The company feels it has made progress in the personal loans business and scaled it rapidly. Now, they (Navi) want to turbocharge it and scale. They will need money for solvency needs in financial services businesses,” a source in the know of developments told the Economic Times.
“To grow its lending business, which already accounts for 90% of its revenues, Navi will have to raise further debt from the markets. The IPO might help Navi, since it may infuse trust amongst investors as its performance and metrics will be out in public,” an individual in the know of developments explained.
Navi provides services to about three million active monthly users. It issued personal loans worth Rs 500 crore in February 2021.
Bansal exited Flipkart after Walmart’s takeover of the e-commerce company back in 2018.
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