Go Digit General Insurance makes market debut at 5% premium

23 May 2024 , 09:51 AM

Go Digit General Insurance saw a promising debut on the stock exchanges, with its shares listing at ₹286 on the National Stock Exchange (NSE), marking a 5.15% increase from the issue price of ₹272. On the Bombay Stock Exchange (BSE), the stock opened at ₹281, reflecting a 3.35% premium.

Prior to the public issue opening, the company raised approximately ₹1,176 Crore through an anchor round. Major investors in this round included Fidelity Investments, Goldman Sachs, the Abu Dhabi Investment Authority (ADIA), and the Custody Bank of Japan.

The Pune-based insurer offered its shares in an initial public offering (IPO) priced between ₹258-272 per share, with a minimum lot size of 55 shares. The IPO was open for subscription from May 15 to May 17. Through this primary offering, Go Digit General Insurance raised a total of ₹2,614.65 Crore. This included a fresh issue of shares worth ₹1,125 Crore and an offer-for-sale (OFS) of up to 5,47,66,392 equity shares.

The IPO was well-received, being oversubscribed by 9.60 times overall. The quota for qualified institutional bidders (QIBs) was particularly popular, subscribed 12.56 times. Non-institutional investors subscribed 7.24 times their allotted quota, and retail investors’ portion was subscribed 4.27 times during the three-day bidding period.

Supported by Prem Watsa’s Fairfax Group, Go Digit General Insurance provides a range of insurance products, including motor, health, travel, property, marine, and liability insurance. The company is known for allowing customers to customize their insurance plans according to their specific needs.

The lead managers for the Go Digit IPO were Morgan Stanley India Company, Axis Capital, Nuvama Wealth Management, HDFC Bank, and IIFL Capital Services, while Link Intime India served as the registrar for the issue.