The Initial Public Offering (IPO) of Go Digit General Insurance is open today (on Wednesday, May 15) for subscription, and will close on, May 17. Impressively, Go Digit IPO garnered ₹1,176.59 crore from anchor investors on May 14. The company issued 4,32,57,009 equity shares offered at ₹272 price per share.
A diverse array of domestic and international institutions participating in the anchor investment, including Fidelity Investment Trust, Goldman Sachs, ACM Global Fund, ITPL Invesco India Mutual Fund, Custody Bank of Japan, Schroder International, East Spring Investments India, ICICI Prudential Mutual Fund, SBI Mutual Fund, Axis Mutual Fund, Mirae Asset Mutual Fund, Ashoka WhiteOak Mutual Fund, Malabar Mutual Fund, Steadview Capital Mauritius Ltd.
The price band for the IPO ranges from ₹258 to ₹272 per equity share, with a face value of ₹10. The lot size stands at 55 equity shares, with subsequent multiples of 55 equity shares.
The Go Digit General Insurance IPO has allocated 75% of its issue size to qualified institutional investors, 15% to non-institutional investors, and the remaining 10% to retail investors.
The promoters of the firm, namely Kamesh Goyal, GoDigit Infoworks Services Private Limited, Oben Ventures LLP, and FAL Corporation, are driving its growth trajectory.
Notably, most famous cricket player Virat Kohli invested ₹2 crore in 2.67 lakh shares of the company in 2020, while his spouse, actress Anushka Sharma, contributed ₹50 lakh through a private placement.
The Go Digit General Insurance IPO comprises an offer-for-sale (OFS) of 54,766,392 equity shares by the promoters and other selling shareholders, alongside a fresh issue of ₹1,125 crore, showcasing the company’s ambition for expansion and development.
IPO Details Of Go Digit
- Promoter selling shareholder, Go Digit Infoworks Services Private Ltd, plans to sell up to 54,755,614 equity shares.
- Additional selling shareholders Nikunj Hirendra Shah and Sohag Hirendra Shah aim to sell up to 3,778 equity shares.
- Nikita Mihir Vakharia and Mihir Atul Vakharia jointly intend to sell up to 4,000 equity shares.
- Moreover, Shanti Subramaniam and Subramaniam Vasudevan seek to sell up to 3,000 equity shares.
- The net proceeds from the IPO will be utilized to support the company’s regular commercial operations and suggested projects funded by net profits.
- The company anticipates benefits from listing its equity shares on stock exchanges, expecting an enhancement in brand awareness and reputation among current and future consumers.
Today’s GMP for Go Digit IPO
Today, the Grey Market Premium (GMP) for Go Digit IPO stands at +47, as reported by investorgain.com. This implies that Go Digit shares are trading at a premium of ₹47 in the grey market. Taking into account the upper end of the IPO pricing range and the current premium in the grey market, it is anticipated that Go Digit shares will debut at a price of ₹319 per share. This represents a 17.28% increase over the IPO price of ₹272. The Grey Market Premium reflects investors’ willingness to pay a price higher than the issue price for the shares
Should You Subscribe or not
Both Master Capital Services Ltd and Swastika Investmart Ltd are optimistic about the potential of Go Digit General Insurance Limited’s IPO. They highlight the buoyant growth of the non-life insurance market, which reached US$ 33.30 billion in Gross Written Premiums (GWP) in Financial Year 2023, with a notable compound annual growth rate (CAGR) of 11.2% from Financial Year 2018 to Financial Year 2023, as per IRDAI and Redseer research.
Master Capital Services Ltd emphasizes Go Digit’s strategic focus on expanding its customer base and product line to capitalize on the industry’s expansion, expressing confidence in the company’s ability to leverage market share growth. They recommend subscribing to the IPO for medium to long-term gains, citing significant growth and margin expansion potential.
On the other hand, Swastika Investmart Ltd acknowledges Go Digit’s recent financial performance improvement despite operational losses and sector-specific risks such as regulatory oversight and potential catastrophic events. They attribute Go Digit’s future profitability potential to its strong technological capabilities and expanding market position. Despite aggressive valuation relative to current profits and operational losses, Swastika Investmart Ltd recommends subscribing to the IPO based on Go Digit’s growth prospects.
About Go Digit Insurance
Go Digit Insurance, is a Bengaluru based comprehensive digital insurance provider which offers a wide range of insurance products including motor, health, travel, property, marine, and liability insurance, among others. Renowned for its customized insurance policies, the company boasts a total of 74 active products across all its business segments
Notably, Go Digit Insurance has garnered support from prominent figures such as Indian cricketer Virat Kohli, who holds approximately 266,667 shares, and actor-producer Anushka Sharma, who owns around 66,667 shares in the company.
Disclaimer: The information provided in this article is for informational purposes only. This information should not be construed as financial or investment advice. Investors encouraged to conduct their own research and consult with qualified, certified experts before making any investment decisions.
 of Go Digit General Insurance is open on Wednesday, May 15 for subscription, and will close on, May 17.){kind=link}