Last Updated on September 27, 2023 by BFSLTeam BFSLTeam
Navi Technologies Ltd is a new-age fintech company operating in the banking, financial services and insurance sectors. It offers a wide array of financial products ranging from personal loans, home loans, health insurance and more. Additionally, it operates India’s first passive-focused AMC, with an aim to make finance simple, hassle-free and accessible to every individual.
Navi has recently filed a DRHP with SEBI to launch its IPO. Find all the information you need to know in this regard by reading this blog.
Also Read: Benefits of Investing in IPO
Table of Content
Headquartered in Bengaluru, Navi Technologies Ltd commenced operations back in 2018. Under the Navi brand, it provides personal loans up to Rs. 20 lakh through a 100% paperless process. In February 2020, this company acquired DHFL General Insurance and now provides simplified and comprehensive health insurance products over its digital platform.
Navi Technologies also deals in microfinance. Under its ‘Chaitanya’ brand, the organisation has a wholly-owned subsidiary, which offers credit to low-income women entrepreneurs in rural and semi-rural areas. Apart from this, Navi also runs an exchange-traded fund (ETF) with one of the lowest fees in the industry.
The company has built a unique position for itself as the country’s leading end-to-end digital fintech player offering loans, insurance and investments in one platform. It has adopted a mobile-first approach, consolidating its offerings in the Navi app. Till December 31, 2021, the company has disbursed personal loans worth Rs. 22,463.12 million and home loans worth Rs. 1,777.09 million.
Navi Technologies Ltd aims to generate Rs. 3,350 crore from the sale of fresh equity shares. The face value of each share shall be Rs. 100 and the price band and issue price is yet to be declared by the company.
The company intends to invest Rs. 2370 crore of the IPO proceeds into Navi Finserv and Rs. 150 crore in Navi General Insurance. The rest of the funds (around 25% of the issue) will be used for general corporate purposes.
With this funding, Navi aims to upgrade its current offerings and improve customer experience. For instance, in its general insurance business, the company plans to create an in-house claim settlement process to reduce dependence on Third Party Administrators (TPAs).
It also intends to expand its current product lineup and continue making investments in its data science and technological capabilities. Additionally, this IPO will help Navi Technologies Ltd optimise its borrowing costs and continue to diversify and expand its funding resources.
Navi Technologies is yet to announce its bid opening and closing dates, listing date, price band, etc. after consulting with its underwriters. They are Axis Capital Limited, BofA Securities India Limited, Credit Suisse Securities (India) Private Limited, Edelweiss Financial Services Limited and ICICI Securities Limited.
You can check your IPO allotment status by visiting the Link Intime India Private Limited website. Simply enter your PAN or IPO allotment number and you can check the latest updates in this regard.
Strengths
These are the strengths of Navi Technologies Limited as a leading fintech company:
- Its mobile-first app-only model provides excellent customer experience and engagement. This helps keep their loan application and approval processes 100% paperless, which appeals to today’s digitally-oriented generation.
- The company’s end-to-end product ownership allows it to develop simple and intuitive products, thus reducing dependence on third parties.
- Navi Technologies Ltd also has full-stack in-house technological capabilities. It helps maintain a secure and scalable platform which facilitates automated workflows, enhanced fraud risk management and improved user experience.
Risks
Before investing in an IPO, knowing the associated risks is also essential. Here are the risks of investing in Navi Technologies Ltd:
- Failure to maintain customers’ trust can adversely affect the company’s business.
- Its technology-based risk management process may not always be successful in identifying, monitoring or mitigating lending risks.
- Defaults in loan repayments by customers can have a huge impact on their business and operations.
- Prolonged power outages or shortages can result in extended system downtime.
- Improper use, collection and hosting of customer data can affect its profitability and reputation.
- Volatility in interest rates can adversely affect its net interest income and as a result its profits.
- Any disruptions in capital sources will have a severe impact on the company’s lending business, along with its financial condition.
Also Read: Risk of investing in IPO
Conclusion
Now that you know the IPO details, strengths and weaknesses of Navi Technologies Limited, you can make an informed choice of whether to invest in this IPO. Remember, you can sell off your IPO shares at any time on or after the listing date. So, even if you are a short-term investor, this IPO may be the right choice to fulfil your financial goals.
FAQs
Navi Technologies is owned by Sachin Bansal, the co-founder of Flipkart and Ankit Agarwal, an investment banker.
Navi Technologies Ltd has yet to consult its underwriters and announce a price band for its IPO.
The minimum and maximum bid amounts for the Navi Technologies IPO are yet to be declared. Please check after some time for the latest updates.
The face value of the Navi Technologies IPO shares is Rs. 100 per equity s
Anchor investors need to pay the full bidding amount while submitting their bidding applications. For other investors, the bidding amount shall be blocked in their respective bank accounts.
