Is Sachin Bansal’s Navi planning an IPO in the Indian market and what are the details?

Sachin Bansal, one of the co-founders of Flipkart along with Binny Bansal, is planning an IPO for his recently floated company, Navi Technologies. It is a focussed digital player in the Indian market. Sachin Bansal had used the funds generated from the sale of stake to Wal-Mart to bankroll Fintech idea, Navi Technologies. This company is now planning to file for a Rs.4,000 crore IPO and the DRHP is expected to be filed shortly by the company.

As of date, not much further details are available except that the size of the IPO would be Rs.4,000 crore and it would be entirely a fresh issue of shares. So there is no dilution of equity by the promoters except the lateral dilution due to the fresh issue. Navi Technologies was floated in the year 2018 in the fintech space and the company has already turned profitable in FY21 itself.

Navi Technologies offers the complete palate of financial services packaged as an advisory model for its customers. These financial services include investment products, loan products, intermediation services, fund based services, fee based services etc. The Navi IPO will be lead managed by ICICI Securities, BOFA Securities and Axis Capital acting as the book running lead managers to the IPO.

A big chunk of Navi is digital lending, which provides loans up to Rs.20 lakh via paperless process. Normally, loans are disbursed in less than 20 minutes. Its current lending book is worth Rs.3,500 crore. Navi also has aggressive plans in microfinance. In 2019, Navi had acquired Chaitanya India Fin Credit for Rs.739 crore in 2019. Navi is also planning to expand its microfinance portfolio quite aggressively in India. Navi group also has a mutual fund origination franchise which largely focusses on Vanguard type of passive funds model.