The company is one of the top digital full stack non-life insurance providers, according to the Red Herring Prospectus (RHP). They use technology to drive what they see as an inventive approach to non-life insurance product design, distribution, and customer experience.
The company’s promoters include FAL Corporation, Oben Ventures LLP, GoDigit Infoworks Services Private Limited, and Kamesh Goyal.
Also Read: Virat Kohli-backed Go Digit General Insurance IPO announces price band at ₹258-272 apiece; check GMP, issue size, more
The company’s 2.67 lakh shares was bought by cricket player Virat Kohli for ₹2 crore in 2020, while his wife, actress Anushka Sharma, invested 50 lakh in a private placement.
Virat Kohli has some preemptive rights as well as a tag along right, as mentioned in the RHP. In addition, if Virat Kohli decides to sell some or all of his interests in thecompany to a third party other than Kamesh Goyal or Go Digit Infoworks Services Private Limited, Go Digit Infoworks Services Private Limited has the right of first offer.
As per news reports, in August 2022, the company submitted a draft red herring prospectus (DRHP) to SEBI in an attempt to raise funds through an initial public offering. But the main reason it did not succeed was because of some compliance requirements related to the system for employee stock appreciation rights. On January 30, 2023, SEBI returned Go Digit’s draft IPO paperwork and requested that the company refile them with the necessary revisions. After then, in April 2023, the business once more submitted its preliminary IPO paperwork to SEBI.
The listed peers of the firm are ICICI Lombard General Insurance firm Ltd (P/E of 48.14x), Star Health and Allied Insurance Company Ltd (P/E of 53.79x), and New India Assurance Company Ltd (P/E of 38.47x).
Between March 31, 2022, and March 31, 2023, Go Digit General Insurance Limited’s profit after tax (PAT) climbed by 112.01% and its revenue increased by 113.35%.
Also Read: Go Digit IPO to open next week; here’s what GMP signals ahead of subscription
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Here are the 10 key things to know about Go Digit IPO:
Go Digit IPO date: The issue opens for subscription on Wednesday, May 15, and closes on Friday, May 17.
Go Digit IPO price band: The issue’s price band has been fixed in the range of ₹258 to ₹272 per equity share of face value of ₹10.
Go Digit IPO lot size: The IPO’s lot size is 55 equity shares and in multiples of 55 equity shares thereafter.
Anchor investors: The allocation to anchor investors for Go Digit General Insurance IPO is scheduled to take place today (Tuesday, May 14).
Go Digit IPO details: The Go Digit General Insurance IPO consists of an offer-for-sale (OFS) of 54,766,392 equity shares by the promoters and other selling shareholders, together with a fresh issue of ₹1,125 crore.
Go Digit Infoworks Services Private Ltd, the promoter selling shareholder, plans to offload up to 54,755,614 equity shares. Other selling shareholders, Nikita Mihir Vakharia and Mihir Atul Vakharia together, plan to sell up to 4,000 equity shares, and Nikunj Hirendra Shah and Sohag Hirendra Shah together, up to 3,778 equity shares. Additionally, Subramaniam Vasudevan and Shanti Subramaniam intend to sell a maximum of 3,000 equity shares.
Also Read: Go Digit IPO: At ₹7 crore, Virat Kohli, Anushka Sharma to make multibagger return of 263% on issue launch
Go Digit IPO objectives: The net proceeds will be used by the firm to fund the initiatives that are recommended to be supported by the net profits in addition to the company’s ongoing business activities. The company also expects benefits from listing the equity shares on stock markets, as it thinks this will enhance its reputation and brand awareness among both present and potential customers.
Go Digit IPO listing date and allotment details: The Go Digit General Insurance IPO basis for share allocation is expected to be finalised on Monday, May 13. The company will start refunding on Tuesday, May 14, and the shares will be credited to the allottees’ demat accounts the same day.Go Digit share price is likely to be listed on BSE and NSE on Thursday, May 23.
Lead Manager and Registrar of Go Digit IPO: The book running lead managers for the Go Digit IPO are ICICI Securities Limited, Axis Capital Limited, Edelweiss Financial Services Ltd, Hdfc Bank Limited, and Iifl Securities Ltd. Link Intime India Private Ltd. is the issue registrar.
Go Digit IPO reservation: 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.
Go Digit General Insurance IPO GMP today: Go Digit IPO GMP today is +40. This indicates Go Digit share price were trading at a premium of ₹40 in the grey market, according to investorgain.com.
Once the top end of the IPO pricing range and the existing premium on the grey market are taken into consideration, shares of Go Digit are anticipated to list at a price of ₹312 per share, which is 14.71% more than the IPO price of ₹272.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Also Read: Go Digit IPO: Virat Kohli, Anushka Sharma-backed Go Digit gets SEBI green signal to launch IPO. Check Details
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 14 May 2024, 05:07 PM IST
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