Navi founder, Sachin Bansal, founded Flipkart in 2007 but quit the company in 2018 after it was acquired by Walmart. He currently holds 97 per cent of the stake in Navi.
New Delhi: Sachin Bansal-owned Navi Technologies is expected to file draft papers for Initial Public Offer (IPO) worth Rs 4,000 crore by the end of the current week. According to a report by Economic Times, the company is likely to launch its IPO in June 2022.
For the unversed, Bansal founded Flipkart in 2007 but quit the company in 2018 after it was acquired by Walmart. He currently holds 97 per cent of the stake in Navi, the report added.
The entire issue will be through the issue of new shares without any offer-for-sale (OFS) component. Bansal will, therefore, retail the majority stake in the company after the IPO.
Navi IPO: What We Know So Far
- The company is expected to launch IPO by June 2022.
- Bansal, who invested Rs 4,000 crore of his personal wealth, will retain the majority stake in the company.
- Navi has been growing rapidly in the loans and microfinance category. Its microfinance company, Chaitanya Credit had filed for a universal bank licence in 2020.
- Along with IPO, Navi also plans to raise at least Rs 8,000 crore via public debt.
- Over the next two years, the company aims to lend a total of Rs 20,000 crore till 2024.
- Navi has 3 million monthly users. In February alone, it lent Rs 500 crore as loans.
- Navi’s Board of Directors has big names like Abhijit Bose, head of WhatsApp India, Usha Narayanan, former PwC Partner and Anand Sinha, former DG of the RBI.
- Along with Navi, big companies like LIC, Delhivery and PharmEasy will also launch their IPOs soon. The plans have been stalled due to the Russia Ukraine war.
- The Russian invasion of Ukraine has led to value erosion of various new-age companies. Nykaa, Zomato and Paytm have touched their lifetime lows in the recent past.
