Go Digit IPO day 1: Issue subscribed 16% so far

15 May 2024 , 12:06 PM

The ₹2,614 Crore initial public offer (IPO) of Go Digit opens for subscription today. The company is offering its shares at an issue price of ₹258-272 per share. Investors who want to apply for the IPO can bid for a minimum of 55 equity shares and in multiples thereof.

In the initial two hours of the offering, the subscription rate for the issue stands at 16%. Retail investors have shown higher interest, bidding for 0.73 times the quota reserved for them. Following closely behind, non-institutional investors have subscribed to 0.09 times their allocated portion. However, as of now, the qualified institutional investors have not subscribed to their quota.

Go Digit IPO comprises a fresh issue of equity shares worth ₹1125 Crore and an offer for sale (OFS) of up to 5.47 Crore shares. Promoter Go Digit Infoworks and other existing shareholders will be offloading their stake in the company under OFS.

The company plans to utilize the net proceeds from the IPO to bolster its ongoing business operations and fund proposed activities. Additionally, listing its equity shares on the stock exchanges is expected to enhance its visibility and brand image among both existing and potential customers.

In terms of financial performance, Go Digit reported a notable increase in net profit, reaching ₹1,290 Crore for the nine months ended FY24. This marks a significant growth from ₹100.21 Crore recorded during the same period in FY23. By the conclusion of FY23, the company’s profit stood at ₹355.47 Crore.

On the operational front, total income for the initial nine months of FY24 amounted to ₹1,308.32 Crore, showcasing a substantial rise from ₹124.19 Crore reported for the corresponding period in FY23. Moreover, the total income for the full fiscal year FY23 was ₹392 Crore.