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Go Digit sets IPO price band at ₹258-272 per share; total issue size may be around ₹2,615 crore
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
The capital raised from Go Digit General Insurance’s IPO will be utilised to undertake its existing business activities; and general corporate purposes. However, the issue proceeds from the OFS will go to the selling shareholders of the company.
Go Digit General Insurance — backed by Canada’s Fairfax, Indian cricketer Virat Kohli and actor Anushka Sharma — has fixed the price band in the range of ₹258-272 for its ₹2,615 crore initial public offering (IPO).
Investors can bid for a minimum of 55 equity shares in one lot and its multiples thereafter. The issue is opening for subscription on Wednesday (May 15), and will remain open until Friday (May 17).
The anchor investor bidding will open one day prior to the bid/offer opening date, i.e., May 14, 2024.
Post the IPO opening announcement, shares of Go Digit Insurance are commanding a premium of ₹50 in the unlisted market.
The grey market is an unofficial ecosystem where shares start trading before the allotment in the IPO and until the listing day. Most investors track the GMP to get an idea of the listing price.
The IPO of Go Digit includes a fresh share sale of ₹1,125 crore and an offer-for-sale (OFS) of up to 5.47 crore equity shares amounting to ₹1,489.65 crore.
Virat and Anushka, who are shareholders of Go Digit, are not selling their shares in the IPO. In 2020, Virat Kohli invested ₹2 crore in the company to buy 2.66 lakh equity shares. Anushka had invested ₹50 lakh in the company.
Promoter Go Digit Infoworks and other existing shareholders are offloading stakes via the public offer.
FAL Corporation is owned by Fairfax Financial Holdings, which owns 45.3% of Go Digit’s holding or parent company —Go Digit Info Works Services (GDISPL)— while the rest is owned by founder Kamesh Goyal and Oben Ventures LLP at 14.96 % and 39.79%, respectively.
About 75% of the net issue has been reserved for the qualified institutional bidders (QIBs), 15% for non-institutional investors while retail investors will get the remaining 10% of the shares.
The capital raised from the IPO will be utilised to undertake its existing business activities; and general corporate purposes. However, the issue proceeds from the OFS will go to the selling shareholders of the company.
For the nine months ended on December 31, 2024, the company posted a net profit of ₹129 crore and a revenue of ₹131 crore. Go Digit’s bottomline came in at nearly ₹36 crore and topline at ₹39 crore for the financial year ended March 31, 2023, making its first year of profitability.
Originally planned in 2022, the Bengaluru-based general insurance company had received a go-ahead in March to launch its IPO after series of delays over multiple compliance issues.
The Bengaluru-based company provides health, travel, property, marine, liability, and other general insurance. The company has a valuation of over $1 billion. It is one of the first non-life insurers in India to be fully cloud-based and integrates APIs.
Morgan Stanley, ICICI Securities, Axis Capital, HDFC Bank, IIFL Securities, Nuvama are the book-running lead managers to the issue, while Link Intime India is the registrar.
Shares of the company shall be listed at both BSE and NSE, with Thursday May 23 as the tentative date of listing.
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