New Delhi: Sachin Bansal-led Navi Finserv’s NCD issue, which was launched on May 23, will close on June 2, eight days ahead of schedule, according to a news release on Wednesday.
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 May 23, 2022.
The management of Navi Finserv, which was incorporated on February 14, 2012, has decided to do an early closure of the issue on Thursday (June 2), eight days ahead of the original schedule of June 10 closure. The closure of the issue of secured, rated, listed and redeemable non-convertible debentures (NCDs) totalling to Rs 600 crore, includes a base issue of Rs 300 crore.
It also comes with an option to retain over-subscription of another Rs 300 crore. As of 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.
According to news reports, 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 per cent,” 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 per cent, which is for 27 months monthly payment option, and a minimum application size of Rs 10,000.
Sachin Bansal’s Navi Finserv’s AUM grew to Rs 2,949 crore by March 2022, 66 per cent growth in a quarter, from Rs 1,771 crore as of December 2021 before impairment loss. The losses in the last quarter of FY22 shrunk to near break-even figure of Rs 4 crore from the previous quarter’s loss of Rs 75.5 crore, said the release.