11% Navi Finserv NCD July 2023 – Details, Interest Rates and Review

Navi Finserv is coming up with secured NCD bonds now. These bonds would open for subscription on 10th July, 2023. Navi Finserv is a non-deposit taking, systemically important NBFC registered with RBI. The interest rates for Navi Finserv NCD are up to 11.02%. These NCDs are offered for 18 months, 27 months and 36 months tenure. Interest is paid either monthly or yearly. Should you invest in Navi Finserv NCD issue of July, 2023? Is Investment in Navi Finserv NCD Safe or risky?

There is flood of NCD bonds now.  Recently Edelweiss Financial Services July-23 NCD’s opened for subscription. Next week, India Bulls Housing Finance NCD of July-23 issue would open.

About Navi Finserv Limited

Company is a non-deposit taking, systemically important NBFC registered with RBI and wholly owned subsidiary of NTL.

NTL is a technology driven financial products and services company in India focussing on digitally connected young middle-class population in India.

Company offer lending products like personal loans, home loans under the Navi brand.

It also offer microfinance loans under the brand name “chaitanya” through its subsidiary, CIFCPL

Navi Finserv NCD Bonds – July-2023 issue details

Opening Date 10-Jul-23
Closure date 21-Jul-23
Security Type Secured, Redeemable and Non-Convertible NCDs
Issue Size (Base) Rs 250 Crores
Issue Size (Shelf) Rs 500 Crores
Issue price Rs 1,000 per bond
Face value Rs 1,000 per bond
Minimum Lot size 10 bonds and 1 bond there after
Tenure 18, 27 and 36  months
Interest Payment frequency Monthly and Yearly
Listing on Within 6 working days on BSE

Here are the details of Navi Finserv NCD July-2023 issue.

NRI’s cannot apply to this NCD subscription.

JM Financials is the lead manager for the issue.

Navi Finserv NCD Interest Rates – Jul-2023 Issue

Series I II III IV X
Frequency of Interest Payment Monthly Monthly Annual Monthly Annual
Tenor (in months) 18 27 27 36 36
Coupon (% per Annum) 9.75% 10.25% 10.75% 10.50% 11.02%
Effective Yield (% per Annum) 10.18% 10.73% 10.78% 11.01% 11.01%
Amount on Maturity (In Rs.) 1,000 1,000 1,000 1,000 1,000

What are the credit ratings for these NCDs?

IND Ratings and Research assigned Navi Finserv NCD rating as IND A/ (Stable) and Crisil has rated as Crisil A/Stable. Instruments with this rating are considered to have a adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk.

How is the company doing in terms of profits?

Here are the standalone profits of the company.

FY2021 – Rs 97.5 Crores

FY2022 – Rs 66.9 Crores (Loss)

FY2023 – Rs 171.9 Crores

Why to invest in these NCDs?

1) Navi Finserv NCD’s offer attractive interest rates where investors can get interest up to 11%.

2) It issues secured NCDs. Its secured NCDs are safe compared to unsecured NCDs. In case company gets wind-up/shut down for some reason, secured NCD investors would get preference in repayment of capital along with interest as those backed up by assets of the company. Hence it is safe to invest in such secured NCD options.

Why not to invest in these NCD Bonds?

Here are the risk factors investors should consider before investing in these bonds.

1) Company has incurred losses for FY22. Investors should always invest in profit making companies so that they can get timely payment of interest and repayment of capital.

2) Company lending business of and micro finance business operations rely intensively on substantial capital for its lending and microfinance business operations. Any disruption can affect company financial condition and liquidity

3) Company is affected by volatility in interest rates in both lending and treasury operations which could cause its net interest income to varry and affect its profitability.

4) Company has significant growth in recent period and may not be able to grow at similar pace in future or manage it effectively.

5) Customers default in repayment obligations can adversely affect company.

6) Covid pandemic has affeced its regular business operations and may continue in fuure too.

7) Refer NCD prospectus for complete risk factors.

How safe is Navi Finserv NCD Bonds?

These NCD bonds are rated as A/ (Stable) by Ind Ratings and Research. Such ratings are considered to have adequate safety regarding timely servicing of financial obligations with low risk. Hence investment in these NCD bonds are little safe.

Should you invest in Navi Finserv NCD July 2023 issue?

These NCD Bonds offer high interest rates and yield. These are higher than small finance bank FD rates. It comes with A/Stable credit ratings which are considered to have adequate safety and carry low risk. These are secured NCDs too.

On the other side investment in these bonds comes with several risk factors. Company credit ratings can change in future without any advance intimation or notice. Company has incurred losses for FY22, however shown significant improvement both in terms of revenue and margins.

Investors who understand all these risk factors can invest in such NCDs.

Source Link: Navi Finserv Jul-23 NCD RHP

Suresh KP


  1. Sir
    I used to watch your U tube uploads

    Is it advisable to invest in this Navi Finserv NCD July 2023 or any other safe NCDs. I am 56 years old presently working in Nigeria

    1. These are secured NCDs, hence somewhat safe compared to unsecured NCDs. However, consider risk factors in such NCDs. DHFL company defaulted NCD investors. SREI has delayed several times in repayment of money. There are several examples like this. Pls consider all these factors and take the decision.

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