Go Digit IPO: Price band ₹258-272; ₹2,600-cr issue opens on May 15

Newage insurer Go Digit General Insurance, backed by Canada's Fairfax Group, has set a price band for its public offer at ₹258-272 per share and the insurer looks to raise ₹2,614 crore at the upper end of the price band. The initial public offering (IPO) of the insurer, which counts cricketer Virat Kohli and his actress wife Anushka Sharma as investors, will open for subscription on May 15 and close on May 17, while the tentative date of listing of shares on the BSE and NSE is May 23.

The Go Digit IPO comprises a fresh issue of ₹1,125.00 crore and an offer for the sale of ₹5.48 crore shares by its promoters and existing shareholders. The lot size is 55 shares and in multiple thereafter.

The company has reserved up to 75% of the shares for qualified institutional buyers (QIB), 15% for non-institutional institutional investors (NII), and the remaining 10% for retail investors.

The general insurance company filed the preliminary IPO papers with the capital market regulator SEBI in April 2023, and it received approval on March 1, 2024. It had first filed the draft red herring prospectus (DRHP) in August 2022, which was returned by the regulator on January 30, 2023, due to certain compliance issues, and was asked to refile with certain updates.

As per the DRHP filed with the SEBI, the company may consider raising up to ₹250 crore in a pre-IPO round. If such placement is completed, the fresh issue size will be reduced.

The company intends to use capital raised from fresh issuance of equity shares to undertake its existing business activities. The insurer believes that the listing of the shares on the stock exchanges will enhance the visibility and its brand image among its existing and potential customers.

Go Digit offers motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and other insurance products, to meet the needs of the customers. It was one of the fastest-growing insurers among private non-life insurers by gross written premium (GWP) in fiscal 2022, as per the company-commissioned RedSeer report mentioned in the DRHP.

ICICI Securities Limited, Morgan Stanley India Company Private Limited, Axis Capital Limited, Edelweiss Financial Services Limited, HDFC Bank Limited, and IIFL Securities Limited are the book-running lead managers and Link Intime India Private Limited is the registrar to the offer. 

So far this month, three mainboard companies – Indegene, TBO Tek and Aadhar Housing Finance – launched their public offers. The ₹1,842-crore IPO of healthcare tech firm Indegene closed on May 8, with the issue subscribing nearly 70 times. The ₹1,550.81-crore IPO of TBO Tek and ₹3,000 crore issue of Aadhar Housing Finance, which opened for bid on May 8, will close today.