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Sachin Bansal is Back in News

Sachin Bansal (Co-Founder of Flipkart) is back in news as his company Navi Technologies filed Draft Red Herring Prospectus (DRHP) to raise INR 3,350 Crores from the public markets. After his exit from Flipkart, he has been active in acquiring various businesses to increase the company’s footprints in the financial services market.
Navi Technologies is a financial service firm providing lending, health insurance, asset management and microfinance services. This proposed issue would be a fresh issue of equity shares and this means none of the existing promoters is selling their shares to the public, which is a positive for the investors.
Proceeds of the issue are proposed to be utilized by two of its subsidiaries that is Navi Finserv Private Limited (A lending arm of Navi Technologies) and Navi General Insurance Limited (An insurance arm of Navi Technologies). This is a serious amount of new investment and it shows the seriousness of Sachin Bansal in getting a larger pie in the financial service market.
However, at what value the shares will be offered to the public would be interesting to see especially in light of recent beating the shares of new-age technology companies have received in India and the US. We have seen how Paytm has suffered in the last few months and investors have been watching their wealth getting eroded. Let’s hope Paytm would be an exception and not the rule for these new-age technology companies.
In nutshell, if everything goes smoothly we will have another listed player with deep pockets and high ambitions in the Banking and Financial Services segment.