Go Digit Insurance IPO: Go Digit General Insurance Ltd, a Canada-based Fairfax Group-backed firm, set a price range of Rs 258-272 per share for its Rs 2,615 crore initial public offering (IPO). The company said that the initial share sale would open for public subscription between May 15 and 17, and bidding for anchor investors would open for one day on May 14. Famous Indian Cricketer and his wife Anushka Sharma (Bollywood Actress) are investors in the online insurance provider.
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Go Digit’s proposed IPO consists of the issuance of fresh equity shares worth Rs 1,125 crore and an offer for sale (OFS) of 5.47 crore equity shares worth Rs 1,490 crore by promoter Go Digit Infoworks Services and existing shareholders.
The total size of the IPO at the upper end of the price band would be Rs 2,615 crore. Go Digit Infoworks Services currently holds an 83.3 percent stake in the company. The proceeds from the fresh issue will be used to increase the company’s capital base and maintain the solvency level, as well as for general corporate purposes.
Virat Kohli and Anushka Sharma are investor
Cricketer Virat Kohli and his wife and actor Anushka Sharma are among the firm’s investors. They are not offering any shares in the IPO. About 75% of the issue size has been reserved for qualified institutional investors, 15% for non-institutional investors, and the remaining 10% for retail investors. Investors can bid for a minimum of 55 equity shares and multiples of 55 equity shares thereafter.
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About Go Digit
Go Digit provides health insurance, travel insurance, motor insurance, property insurance, liability insurance, marine insurance, and other insurance products to meet the needs of customers.
It is one of the first non-life insurance companies in India to operate fully on the cloud and has developed application programming interface (API) integration with multiple channel partners. Go Digit received approval from the Securities and Exchange Board of India (SEBI) in March to launch an IPO.
Other Details
The company had first filed a draft red herring prospectus (DRHP) with SEBI in August 2022 to raise funds through an initial share sale. However, it was thwarted mainly due to certain compliance requirements related to the Employee Stock Appreciation Rights Plan.
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SEBI returned Go Digit’s draft IPO papers on January 30, 2023, and asked the company to refile the documents with some updates. The company then filed preliminary IPO papers with SEBI again in April 2023. ICICI Securities, Morgan Stanley India Company, Axis Capital, HDFC Bank, Nuvama Wealth Management, and IIFL Securities are the book-running lead managers for Go Digit’s IPO.
