Navi Technologies IPO

Navi Technologies limited is an Indian technology-driven financial products and services firm focused on the country’s digitally connected young middle-class population. Navi Technologies IPO will hit the stock market in August 2022.

About Navi Technologies

As per the RedSeer Report, Navi Technologies Limited is among India’s leading end-to-end digital ecosystem providers, with complete control over the three non-payments financial service offerings of loan, insurance, and asset management.

Navi Technologies Limited has taken a mobile-first approach to developing customer-centric solutions, leveraging their strong in-house technology and product experience.

They’ve expanded their “Navi” brand’s offerings to include personal loans, house loans, general insurance, and mutual funds since their company’s inception. They also provide microfinance loans under the “Chaitanya” brand through a wholly-owned subsidiary.

The end-to-end ownership of Navi Technologies Limited’s goods and technology, as per the RedSeer Report, gives them a strategic advantage over traditional incumbents and third-party based fintech platforms.

Market Opportunity

The financial services area in India is extremely underpenetrated, according to the RedSeer Report, which gives a large opportunity for a technology-first company to gain a large market share.

Furthermore, their extensive industry and customer research reveals that when it comes to financial services, customers from all segments face a variety of issues.

Navi technologies use this information to identify product prospects that will give them access to previously untapped markets and allow them to reimagine the consumer experience.

The predicted growth of such industries in India over the next five years reflects their target market segments’ tremendous growth potential.

Their objective is to create a customer-centric and technology-first organization that provides simple, affordable, and accessible financial products and services.

Customer-first philosophy

When they launch a new product, they begin by gaining a thorough understanding of their customers in order to better understand their demands, alleviate their pain spots, and increase customer delight.

They execute customer insights research and deploy randomized tests with A/B Testing, a process of testing various variations against each other, on a regular basis to evaluate customer behavior in a live environment and obtain immediate actionable insights.

Furthermore, they strive to make their products user-friendly and straightforward to comprehend. When making decisions, they pay more attention to what customers do than what they say.

The Navi App offers their personal loan, home loan, and health insurance customers a simple and enjoyable experience while reducing manual intervention and paperwork.

Navi Technologies IPO

Navi Technologies Limited, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 3,350 crore on 09 March 2022.

The offer includes a fresh issue of 3,350 crore and there is no offer for sale (OFS) by the promoters mentioned in the DRHP. They are looking for a Pre-IPO placement of INR 670 crore in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	31-Dec-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	7,256.75	6,306.27	5,100.98	60.66
Total Revenue	719.38	780.02	207.01	16.95
Profit After Tax	(247.05)	106.26	2.93	4.31

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	2.47	2.47	3
Financial Year 2020	(2.09)	(2.09)	2
Financial Year 2019	7.31	7.31	1
Weighted Average	1.76	1.76
31 Dec. 2021	(7.16)	(7.16)

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

The following are among the particular factors and key strengths that go into determining the Issue Price:

1. A mobile-first strategy improves customer engagement and experience.
2. Product ownership from beginning to end.
3. Full-stack technical skills in-house.
4. The operating approach is based on risk management, data science, and machine learning.
5. Cross-sell and up-sell are all examples of network effects.
6. Experienced leadership team and track record of the promoter.
7. A strong tech team and a workplace atmosphere founded on values.

Navi Technologies Comparison

S. No.	Face Value	Company Name	PE
1	2	Bajaj Finance Limited	83.68
2	10	SBI Cards and Payment Services Limited	74.54
3	10	CreditAccess Grameen Limited	73.49
4	10	ICICI Lombard General Insurance Company Limited	37.58
5	10	Star Health and Allied Insurance Company Limited	N/A
6	5	HDFC Asset Management Company Limited	33.75
7	10	Nippon Life India Asset Management Limited	26.66
8	5	Aditya Birla Sun Life AMC Limited	26.87
9	10	UTI Asset Management Company Limited	21.75

Navi Technologies IPO Details

IPO Opening Date	August 2022
IPO Closing Date	August 2022
Issue Type	Book Building
Face Value	100 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	3,350 Crore
Fresh Issue	3,350 crore
Offer for Sale	0

Navi Technologies IPO Date

Navi IPO opening date is August 2022, and the closing date is August 2022. The Navi Technologies issue may list in August 2022.

IPO Opening Date	August 2022
IPO Closing Date	August 2022
Basis of Allotment Date	August 2022
Initiation of Refunds	August 2022
Credit of Shares to Demat Account	August 2022
IPO Listing Date	August 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	75	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	10	Minimum 1 lot based on availability

Navi IPO Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Navi Technologies limited IPO.

Navi Technologies IPO GMP

Navi IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
August 2022
August 2022
August 2022
August 2022
August 2022
August 2022
August 2022
August 2022
August 2022
August 2022
August 2022
August 2022

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Navi IPO Review

Navi IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Navi Technologies IPO is good or bad.

Navi IPO Risk

1. Their technology-driven underwriting, risk assessment, and collection procedures may not be able to determine, analyze, or mitigate the risks in Navi technologies lending operations efficiently.
2. Their business, results of operations, financial position, and cash flows may be negatively impacted if their clients default on their debt repayments.
3. Navi Technologies limited’s cloud computing software and data centers, which store their primary and backup data, may encounter system disruptions, extended power outages, or power shortages.
4. Their company handles a lot of data, especially personal data, and inappropriate data acquisition, hosting, use, or disclosure could damage their reputation.
5. Navi technologies limited had a lot of growth in recent quarters, and they might not be able to keep it up or manage it efficiently.

Other Threats

1. Their failure to meet their responsibilities, particularly financial and other covenants under their financing agreements, could have a negative impact on their operations.
2. The Directorate of Enforcement has issued a show cause notice to their Promoter in connection with alleged FEMA non-compliances.
3. Their Material Subsidiary, CIFCPL, has applied to the RBI for a universal banking license, although they cannot guarantee that such a license would be granted.
4. Their lending and microfinance businesses rely heavily on large amounts of capital, and any disruption in their capital sources could have a negative impact on their liquidity.
5. Depending on the degree and duration of the COVID-19 pandemic, it has had an impact on their usual daily operations and may continue to do so.

Business Model

To increase their reach across India, they use technology to adopt a direct to customer approach for their personal loans, home loans, health insurance, and mutual fund offerings.

This enables them to take advantage of the enormous pool of digitally connected clients while avoiding the significant costs associated with physical channels & intermediaries.

This strategy also creates cross-sell and up-sell opportunities within their ecosystem, with the goal of improving client lifetime value.

Unlike traditional financial services, their digital-first distribution model for personal loans, home loans, and health insurance allows them to provide products and services to customers without relying on physical infrastructure. This gives them a large consumer base & allows them to provide financial services to a diverse group of people.

Navi IPO Brokerage views

once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this Navi Technologies IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Navi IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
August 2022	1
August 2022	2
August 2022	3

Navi Technologies  Management

Sachin Bansal, their co-founder, promoter, & CEO, is the former chairman and co-founder of Flipkart. Sachin earned his bachelor’s degree in computer science from IIT Delhi in 2005.

He was named to Fortune Magazine’s World 40 Under 40 list in 2012, the Economic Times’ Entrepreneur of the Year list in 2013, and Time Magazine’s 100 Most Influential People in the World list in 2016.

Ankit Agarwal, a former banker who held key positions at Deutsche Bank & Bank of America, co-founded their company with Sachin.

Ankit earned his bachelor’s degree in computer science from IIT Delhi in 2004. He also has an MBA from IIM Ahmedabad, where he received his degree in 2008. Sachin & Ankit have put together a solid leadership team.

Promoters

• Sachin Bansal

Promoter’s Holding

Pre Issue Share Holding	97.77%
Post Issue Share Holding

Navi technologies limited Prospectus