Details of the Corporate Bond:
- Name of the Issuer: Navi FinServ Limited
- Product: Senior secured Bonds (regulated by SEBI)
- Yield: 10.80% p.a.
- Tenure: ~25 months
- Min. Investment: Rs. 1,000
- Interest repayment: Monthly
- Principal repayment: Maturity
- Rating: A (CRISIL)
Key Highlights:
- As of Q3FY24, Navi is capitalised with a NW of 2,889 crore. Correspondingly, the company’s gearing has also remained comfortable and was at 2.2x
- Strong growth in the AUM with a book size of 10,496 crore in Dec'23 up from 2504 crore in Mar'22
- Portfolio quality has been improving over the year with net NPA of only 0.52% as of Dec'23
- As on Dec'23 end, at standalone level the NBFC has a cash balance and investment book was around 1700 crore and will further improve with selling of stake in Chaitanya
Overview:
Navi FinServ Ltd. is a non-deposit taking, systemically important NBFC registered with the RBI. The company was founded by Mr. Sachin Bansal, one of the founders of Flipkart. The company offers lending products like personal loans and home loans under the “Navi” brand. It is in the business of lending to individuals and entities including micro, small and medium enterprises, rural credit, and other body corporates across India and provide credit related services as an NBFC, including, inter alia, intermediation services for financial services agents and money transfer agents; credit linkage services; acting as a banking correspondent and generally carrying out most of the activities permissible to be carried out as an NBFC.
Management:
Sachin Bansal (Executive Chairman and CEO): Sachin Bansal is the former Chairman and co-founder of Flipkart, India’s leading e-commerce marketplace, which was acquired by Walmart in 2018. Under his tenure, Flipkart has pioneered innovations that have redefined the e-commerce ecosystem in India, e.g. cash on delivery, replacement guarantees on products, UPI payments, owned logistics network, etc. He holds a bachelor’s degree in computer science and engineering from Indian Institute of Technology, Delhi. He is the co-founder of Flipkart.
Ankit Agarwal (Managing Director): He was previously associated with Bank of America as a director in global banking and markets. He was also associated with Deutsche Bank AG as their vice president. He holds a bachelor’s degree in computer science and engineering from Indian Institute of Technology, Delhi and a master’s degree in management from Indian Institute of Management, Ahmedabad.
Key Financials:
All figures in INR crore
|
Balance Sheet |
FY 22 |
FY 23 |
9m FY24 |
|
Cash & cash equivalents |
487 |
673 |
848 |
|
Loans Portfolio |
2,791 |
6,370 |
7,445 |
|
Investments |
662 |
989 |
1,361 |
|
Other financial assets |
117 |
277 |
207 |
|
Other non-financial assets |
746 |
215 |
343 |
|
Total Assets |
4,140 |
8,523 |
10,204 |
|
Total Equity |
1,185 |
2,270 |
2,889 |
|
Borrowings |
2,813 |
5,763 |
6,444 |
|
Other Liabilities |
19 |
283 |
448 |
|
Non-Financial Liabilities |
123 |
207 |
423 |
|
Total Liabilities & Equity |
4,140 |
8,523 |
10,204 |
|
P&L Statement |
FY 22 |
FY 23 |
9m FY24 |
|
Interest Income |
314 |
1,181 |
1,152 |
|
Total Income |
459 |
1,377 |
2,106 |
|
Finance cost |
81 |
427 |
480 |
|
Impairment on Financial instruments |
140 |
369 |
357 |
|
Profit Before Tax |
-89 |
198 |
809 |
|
Tax Expense |
-22 |
26 |
190 |
|
PAT |
-67 |
172 |
619 |
Lenders:
The prominent lenders in The Navi FinServ are:
Debt:
- SBI
- HDFC Bank
- Sundaram Finance
- JM FinancialUNIFI AIF
Equity:
- Navi Technologies Limited
Disclaimer: The content of this blog should not be considered as financial or investment advice.