After hitting a wall in its efforts to raise equity, the financial services company looks to increase its appeal among bond market investors by going the extra mile.
Sachin Bansal’s Navi Technologies has turned to crowdfunding a Rs 250-crore fundraise, through the issue of non-convertible debentures at a yield of 11.85%.
On the face of it, taking the NCD route to raise funds isn't a new thing for the financial services company. Its subsidiary, Navi Finserv, raised close to Rs 600 crore through an NCD issue in February, its third such in just two years.
What sets this fresh issue apart is the fact that it comes with a personal guarantee from Bansal. As well as some onerous strictures that both Bansal and the company have to …
Furquan leads the banking coverage at The Morning Context. A business journalist with eight years of experience and a best-selling author, in his earlier stints as a reporter with the Deccan Herald and a columnist at The Banker, he wrote on banking, financial markets and regulatory affairs. He has extensively covered India's debt market crisis, banking crisis and the fall of Yes Bank.
Editor, Banking
furquan@mailtmc.com
Delhi