Go Digit IPO to open for subscription on May 15th

10 May 2024 , 01:39 PM

The public offering of Go Digit is set to debut for subscription from May 15th until May 17th. Anchor investors will have the opportunity to place their bids on May 14th, as outlined in the Red Herring Prospectus (RHP). After overcoming several compliance hurdles, Go Digit’s IPO received approval in March 2024.

The price band for the public offer is established at ₹258-272 per share, with projections indicating potential fundraising of ₹2,538 Crore at the lower end and ₹2,614 Crore at the upper end. Each lot comprises 55 shares, with multiples thereafter.

Shareholders Virat Kohli and Anushka Sharma, notable figures in Indian cricket and cinema respectively, have opted not to sell their shares in this public offering.

The insurance company, supported by Prem Watsa, includes a fresh issue of shares valued at ₹1,125 Crore, alongside an offer-for-sale (OFS) of up to 5,47,66,392 equity shares by its promoters and existing shareholders.

On May 4th, the Insurance Regulatory and Development Authority of India (IRDAI) imposed a penalty of ₹1 Crore on Go Digit for failing to disclose a change in the conversion ratio of compulsorily convertible preference shares (CCPS) issued by its parent company to Fairfax-owned FAL Corporation. Initially set at “1 CCPS for 2.324 equity shares” during the joint venture in 2017, the company later adjusted it to “2.324 CCPS for 1 equity share.”

Founded in 2016 and based in Pune, Digit General Insurance Company offers various insurance products including car, travel, mobile, and jewellery insurance. The firm intends to utilize the net proceeds to strengthen its capital base and uphold solvency levels.

ICICI Securities Limited, Morgan Stanley India Company Pvt Ltd, Axis Capital Limited, HDFC Bank Limited, IIFL Capital Services Ltd, and Nuvama Wealth Management Limited are the book-running lead managers for the Go Digit IPO, with Link Intime India Private Ltd serving as the registrar for the issue.