A new bond issue is currently open which could be a good opportunity for high-risk bond investors. Talking about the company first, Navi Finserv Limited (formerly, Chaitanya Rural Intermediation Development Services Private Limited) is an RBI-registered non-deposit-taking NBFC which is the latest venture by Sachin Bansal, the co-founder of Flipkart. As the name suggests, the company is primarily into providing financial services such as Housing loans, personal loans, loans against property, etc.
Navi Fiserv (NYSE:FI) is raising INR 250 crores (base) with INR 500 crores shelf size which will be used for general corporate purposes, onward lending, financing etc. The price of 1 bond is INR 1,000 and the lot size is 10, therefore the minimum investment required to subscribe to the IPO is INR 10,000.
On the financial front, the total assets of the company grew from INR 4,402.09 crores in FY21 to INR 12,523.95 crores in FY23. In the same period, it bumped up its revenue from INR 565.24 crores to INR 2,078.55 crores.
Coming to the IPO, the company is issuing 5 series of bonds with maturities - 18, 17 and 36 months and frequency of payments - monthly and annually. The lowest interest is being offered on 18-month bonds, at 9.75% while the max interest is on the 36-month bonds, at 11.02%.
These are secured bonds and have been rated A by CRISIL (NS:CRSL) and India Ratings with both giving a stable outlook. Bonds with such ratings are considered slightly riskier, but still worth looking at them from an investment perspective. Due to some degree of risk, the coupon rates are also high.
There are many platforms from where investors can subscribe to this issue (in case they are interested). Some of them are GoldenPi, IndiaBonds, Wint Wealth etc. As usual, none of these platforms are promoted and you should do your own due diligence of their reliability before investing.