Navi Finserv, a wholly owned subsidiary of Navi Technologies, has announced the public issue of Non-Convertible Debentures NCDs amounting to Rs 600 crore with a base issue of 300 crore and an option to retain over-subscription of another 300 crore.
The issue will be open on May 23 and close on June 10 with an option of early closure or extension.
The secured, rated, listed redeemable NCDs have a rating of A Stable by India Ratings Research. This rating is considered to have a good degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk, according to a statement by Navi Finserv.
The statement said that investors will get an opportunity to participate in secured NCDs under various series for a period of 18 months and 27 months with an effective yield of up to 9.80 per cent and a minimum application size of Rs 10,000.
The company has approved personal loans for over 84 per cent of all Indian pin codes, and offers personal loans and home loans under the Navi brand. The company's net worth was 1,189. As of December 31, 2021, 57 crore had a debt to equity ratio of 2.1 times as on December 31, 2021, which was the lowest level of debt to equity ratio since December 31, 2021.
As of March 31, 2021, it had a net NPA of 0.08 per cent and a collections efficiency of 96.63 per cent for personal loans, sub-debt, term loans, market-linked debentures, commercial papers and securitisation instruments such as PTCs.
The upcoming NCD issue is intended to raise funds for onward lending and financing purposes. Ankit Agarwal, Managing Director of Navi Finserv, said that this will add more retail investors to our portfolio and diversify our borrowing profile.