Navi Finserv Limited, a wholly-owned subsidiary of Navi Technologies, has announced the public issue of Non-Convertible Debentures (NCDs). The issue opens on May 23, 2022, and closes on June 10, 2022. Navi is offering a yield ranging up to 9.80%.
Rated IND A/Stable by India Ratings and Research. The issue has a base size of Rs. 300 crores with an option to retain oversubscription up to Rs. 300 crores.
Series
Frequency of payment
Tenor
Coupon Rate
Effective Yield
I
Monthly
18 months
9.20%
9.59%
II
Annual
18 months
9.50%
9.57%
III
Monthly
27 months
9.40%
9.80%
IV
Annual
27 months
9.75%
9.77%
Issue Period
23rd May 2022 to 10th June 2022
Minimum Application
10 NCDs and in multiples of 1 thereafter
FV/Issue Price
Rs. 1000 per NCD
For more details, you can check the prospectus filed by the company:
Investors who like taking risks, or those who are risk tolerant with good management, can definitely take up Navi NCDs. For the first 18 months of the NCD, the annual return has been set at 9.5 percent. And 9.75 percent every year for the next 27 months. If investors choose the monthly option, they would receive 9.2 percent for the first 18 months and 9.4 percent for the next 27 months.
Although the risks are substantial, any fixed-income, risk-tolerant investor who is prepared to face them should do so. The issue will expire on June 10, so make your decision as soon as possible.
This representation is not correct. There are two separate NCD.
If you invest in 18 month NCD, you get 9.5% and if you invest in 27 month NCD you get 9.75% interest rate.
I wouldn’t buy securities of a company who’s products I will never buy.
Delinquencies may rise in the personal and home loans segment as layoffs are starting. The mutual fund business is a cash burner. Who knows if the company is still there after 18 months to repay the principal.
