Navi Technologies IPO Analysis has filed DRHP for its Rs 3350 cr IPO .
Navi Technologies Company Details
Navi Technologies is a technology-driven financial products and services company in India focusing on the digitally connected young middle-class population of India. It is uniquely positioned in India as one of the leading end-to-end digital ecosystem players with complete control over all three non-payments financial service offerings – lending, insurance and asset management, according to the RedSeer Report.
It has adopted a mobile-first approach, utilising its strong in-house technology and product expertise to
build customer-centric products. Since this Company’s incorporation, it has expanded offerings under its “Navi” brand to include personal loans, home loans, general insurance and mutual funds. It also offers microfinance loans, through a wholly-owned Subsidiary, under the “Chaitanya” brand.
According to the RedSeer Report, its end-to-end ownership across products and technology gives it a
competitive advantage over traditional incumbents and third-party dependent fintech platforms.
The financial services space in India is highly underpenetrated (across segments including lending, insurance, and mutual funds), which presents a big opportunity for a technologyfirst company to capture a large market share. Further, its in-depth market and customer research indicates that customers across segments experience multiple pain-points when availing financial services. It uses this data to target product opportunities that provide it access to large unaddressed markets and enable it to redefine the customer experience.
Its target market segments in India present significant growth potential as reflected in the projected growth of such industries over the next five years. Between the Financial Years 2021 and 2026:
• retail loan AUM is expected to grow at a CAGR of approximately 18-20% to reach US$1.15-1.25 trillion;
• health insurance GWP is expected to grow at a CAGR of approximately 16% to reach US$17.6 billion; and
• mutual fund AUM is expected to grow at a CAGR of approximately 17% to reach US$1.0 trillion.
For more information, click www.navi.com
The Promoters of Navi Technologies
Navi Technologies IPO Main Objects
The Offer comprises the Fresh Issue by the Company and an Offer for Sale by the Selling Shareholders.
The Net Proceeds are proposed to be utilised towards
1. Investment into our Subsidiaries, Navi Finserv Private Limited (“NFPL”) and Navi General Insurance Limited (“NGIL”);
Navi Technologies IPO Details
Issue Type: Book Built Issue IPO
Issue : up to ? Shares /Rs 3350 Crore
* Fresh Issue of (?) Sh/ Rs.3350 Cr
Face Value per share : Rs. 100
Navi Technologies Listing will at BSE,NSE
Navi Technologies IPO Financial & Analytical Ratios
Earnings per Share 2019-20 Rs (2.09)
Earnings per Share 2020-21,Rs 2.47
Earnings per Share 2021-22 9M Rs (7.16)
Book Value of the Share as on 31.12.2021 Rs 129.49
Return on Net Worth: 19-20 (0.20) %
Return on Net Worth: 20-21: 1.81 %
Return on Net Worth: 20-21 9M : (5.53) %
Equity Shares prior to the IPO : 288,138,978 Shares
Equity Shares after the IPO : (?) Shares
Navi Technologies IPO Peer Comparison:
Bajaj Finance @ PE Multiple of 83.68
SBI Cards @ PE Multiple of 74.54
CreditAccess Grameen @ PE Multiple of 73.49
ICICI Lombard General Insurance @ PE Multiple of 37.58
Navi Technologies IPO Lead Managers
Axis Capital,BoA Securities,Credit Suisse Securities (India),Edelwiess Financial Services,ICICI Securities,
Registrar to Navi Technologies IPO
Linkintime India Pvt Ltd.
Registered Office of Navi Technologies
3rd Floor, Salarpuria Business Center, 93, 5th A Block, Koramangala Industrial Layout, Bengaluru 560 095
Company Secretary & Compliance Officer : Thomas Joseph