Sachin Bansal's Navi Finserv NCD issue to close 8 days ahead of schedule. Subscription status, key details
Premium- Sachin Bansal's Navi Finserv’s maiden public NCD issuance was launched on 23rd May 2022
Sachin Bansal-led Navi Finserv's NCD issue, that was launched on May 23, 2022, will close early i.e., eight days ahead of schedule on Thursday, June 2, 2022. The issue was earlier planned to close on June 10 with an option of early closure or extension.
Navi’s maiden public NCD issuance was launched on 23rd May 2022. The management has decided to do an early closure of the issue of secured, rated, listed and redeemable Non-Convertible Debentures (NCDs) totalling to ₹600 crore, which includes a base issue of ₹300 crore. It also comes with an option to retain over-subscription of another ₹300 crore.
As of 11 am on June 1, Navi Finserv's NCD issue has been subscribed 0.80 times with retail category booked 0.34x, institutions 2.54x, corporate 0.34x, and HNIs 0.41x.
The NCD issue aims to raise funds for onward lending and financing purposes, diversify borrowing profile and add more retail investors to its portfolio to complement our wide base of Institutional partners, Navi Finserv said.
“This is a secured instrument with A (stable) rating, a low application size and an effective yield of upto 9.80%*," said Ankit Agarwal, managing director, Navi Finserv.
The company had said that the proposed NCDs have A (Stable) rating by India Ratings & Research Pvt Ltd. “This rating is considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk."
Investors can participate under various series for tenure of 18 months and 27 months offering an effective yield of up to 9.80%, which is for 27 months monthly payment option, and a minimum application size of ₹10,000.
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Sachin Bansal's Navi Finserv's AUM grew to ₹2,949 crore by March 2022, 66% growth in a quarter, from from 1771 crore as of December 2021 before impairment loss. The losses in the last quarter of FY22 (Jan-Mar) shrunk to near break-even figure of ₹4 crore from the previous quarter's loss of ₹75.5 crore.