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Financial services platform Navi raised Rs 150 Cr via NCDs

Through the issuance of non-convertible debentures (NCDs), financial services platform Navi Finserv has raised Rs 150 crore from six individual investors, including senior Dadachanji Group executives.

According to the company’s regulatory filings with the Registrar of Companies, the board of Navi has approved a special resolution to allocate 15,000 non-convertible debentures (NCDs) at an issue price of Rs 1,00,000 per debenture for a consideration of Rs 150 crore.

In this debt round, the combined investments of Rohit Kapadia, Sandhya Kapadia, and Yash Kapadia were Rs 40 crore, while Kairus Shavak Dadachanji, Pervin Kairus Dadachanji, and Rishad Kairus Dadachanji invested Rs 110 crore.

The chairman of the Dadachanji Group, which owns and runs a number of businesses, including Sovereign Pharma, Kaisha Packaging, and Kaisha Lifesciences, is Kairus Shavak.

Navi had stated in February that it intended to raise Rs 600 crore by issuing NCDs to the general public. The NCDs, according to Navi, will have maturities of 18 months, 27 months, and 36 months and yields between 10.47% and 11.19%.

The money will be used by the Sachin Bansal-led company for financing, lending, loan repayments, and other general business needs.

According to the Morning Context report, Navi resorted to crowdsourcing a fundraise of Rs 250 crore after the company was unable to secure equity capital at the desired valuation.

Over the past few years, Navi has raised money through NCDs. It raised Rs 600 crore in May 2022, and in July 2023, it received an additional Rs 500 crore.

For a potential fundraising of up to Rs 3,350 crore, Navi submitted its draft red herring prospectus (DRHP) to SEBI in March 2022. Nevertheless, even after getting the market regulator’s approval, the company was forced to postpone the IPO plan due to the current state of the market.

After postponing the listing plan, the company also let go of almost 200 workers.

For the second quarter of FY24, or the quarter ending in September 2023, Navi reported operating revenue of Rs 421.5 crore. The company reported a profit of Rs 10.86 crore for the quarter, according to its unaudited financial statement, which is available online.

 

 

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