On the final day of the bidding process, the initial public offering (IPO) of Bengaluru-based start-up Go Digit General Insurance was successfully completed. By the end of the second day, the issue was 79% subscribed.
As of 11:28 am on the third day, the IPO had received bids for 5,78,21,500 shares, surpassing the issue size of 5,28,69,677 shares, reaching a subscription rate of 1.09 times. The portion designated for retail individual investors (RIIs) saw a subscription rate of 2.97 times. Non-institutional investors (NIIs) subscribed at 1.13 times their allocated quota, while the segment reserved for qualified institutional bidders was 45% subscribed.
According to BSE data, the initial share sale garnered bids for 50,76,21,455 shares, significantly exceeding the 5,28,69,677 shares available in the offering.
The Go Digit General Insurance IPO, which opened for subscription on Wednesday, May 15, concluded on May 17. According to BSE data, the IPO was 79% subscribed by the end of the second day of bidding on Thursday. On the first day of bidding, the subscription status for the Go Digit General Insurance IPO stood at 36%, based on BSE data.
Prior to the issue opening, the firm secured approximately Rs 1,176 crore in the anchor round, attracting investments from Fidelity Investments, Goldman Sachs, ADIA, and Custody Bank of Japan, among others.
The offering comprises a combination of a fresh issue amounting to Rs 1,125 crore and an offer for sale of up to 54.77 million equity shares by promoters and other selling shareholders.
In 2020, cricketer Virat Kohli purchased 2.66 lakh shares of the company for Rs 2 crore, while his actress wife Anushka Sharma invested Rs 50 lakh through a private placement. The insurance firm intends to use the net proceeds to bolster its capital base and maintain its solvency levels.
Analysts have recommended that investors subscribe to the issue, citing the company’s advanced technology platform and predictive underwriting model as strong foundations for ongoing innovation and growth.
“Despite the aggressive valuation in light of recent earnings and operating losses, Go Digit’s robust technological capabilities and its position within a growing market indicate potential for future profitability. Based on these considerations, we assign a subscribe rating to this IPO,” stated Swastika Investmart.
The company has set a price range of Rs 258-278 per share for its initial public offering. At the top end of this range, the company aims to raise Rs 2,615 crore.
Investors can place bids for a minimum of 55 shares per lot, with additional bids in multiples of this amount. Approximately 75% of the public offering is allocated for qualified institutional buyers (QIBs), 15% for non-institutional investors, and the remaining 10% for retail investors.
About Go Digit
Go Digit is a prominent digital full-stack insurer and the fastest-growing private non-life insurer in India by Gross Written Premium (GWP). They provide a streamlined and personalized customer experience, with a significant emphasis on empowering their distribution partners.
In the nine-month period ending December 2023, Go Digit’s net earned premium increased to Rs 5,115 crore, compared to Rs 3,767 crore during the same period in the previous financial year. The company reported a profit after tax of Rs 129 crore for this nine-month period, up from Rs 10 crore in the first nine months of FY23.
