Get ready to dive into the bustling world of insurance investments as Go Digit General Insurance IPO opens today for subscription! The IPO, which will close on Friday, May 17th, has already caught the attention of investors, earning a whopping ₹1,176.59 crore from anchor investors on Tuesday, May 14th.
The company, issuing 4,32,57,009 equity shares to anchor investors at a price of ₹272 per share, has set a price band of ₹258 to ₹272 for each equity share. With a face value of ₹10, the lot size for the IPO is 55 equity shares, with multiples of 55 equity shares thereafter.
With 75% of the issue size reserved for qualified institutional investors, 15% for non-institutional investors, and the remaining 10% for retail investors, there’s ample opportunity for various investor profiles to get involved.
Go Digit General Insurance Limited offers a versatile range of insurance products, from health and liability to property, marine, travel, and auto insurance, all customizable to fit customers’ needs perfectly.
Among the company’s notable investors are cricket star Virat Kohli, who purchased ₹2 crore worth of the company’s shares in 2020, and his wife, actress Anushka Sharma, who invested ₹50 lakh in a private placement.
The 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. The net proceeds from the IPO will support both regular commercial operations and suggested projects, with potential benefits anticipated from the equity share listing on stock exchanges.
In the financial year 2023, the non-life insurance market generated approximately US$ 33.30 billion in Gross Written Premiums (GWP), indicating significant growth potential. Go Digit General Insurance Limited aims to capitalize on this growth by expanding its customer base and enhancing its current offerings.
Despite operational losses, Go Digit’s recent financial performance has shown improvement, although risks inherent to the insurance sector persist, including regulatory oversight and potential claim liabilities from catastrophic events.
Excitement surrounding the IPO is palpable, with Go Digit IPO GMP today standing at +47, signaling a premium of ₹47 in the grey market. Taking into account the top end of the IPO pricing range and the existing premium on the grey market, Go Digit shares are expected to list at around ₹319 per share, representing a 17.28% increase over the IPO price of ₹272.
