Trio Set for IPOs: Go Digit, Denta Water, and KRN Heat Exchanger Get Sebi Nod

5 Mar 2024 , 07:17 AM

Go Digit General Insurance, backed by Canada-based Fairfax Group, has received approval from the Securities and Exchange Board of India (Sebi) to raise funds through an initial public offering (IPO), as per the update with the regulator on Monday. This approval follows the submission of preliminary IPO papers by the company in August 2022.

The proposed IPO by Go Digit includes a fresh issuance of shares worth ₹1,250 Crore and an offer-for-sale (OFS) of 10.94 Crore shares by promoter Go Digit Infoworks Services and existing shareholders, according to the draft red herring prospectus (DRHP).

Proceeds from the fresh issuance are intended for bolstering the company’s capital base, maintaining solvency levels, and general corporate purposes. Notably, cricketer Virat Kohli and his wife, actor Anushka Sharma, are among the investors in the firm.

Sebi’s issuance of an observation letter on March 1 signifies the regulator’s green light for the public issue. The company had initially filed the DRHP with Sebi in August 2022 but encountered obstacles primarily related to compliance requirements regarding the employee stock appreciation rights scheme. After Sebi returned Go Digit’s draft IPO papers on January 30, 2023, with instructions to refile the documents, the company submitted the updated preliminary IPO papers in April 2023.

Go Digit offers a comprehensive range of insurance products, including motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and others, to cater to various customer needs. It stands out as one of the pioneering non-life insurers in India operating entirely on the cloud, with API integrations developed with numerous channel partners.

In addition to Go Digit, Denta Water and Infra Solutions and KRN Heat Exchanger and Refrigeration have also received Sebi’s approval to launch their maiden public issues. Denta Water and Infra Solutions’ IPO comprises an entirely fresh issue of up to 75 lakh equity shares, with proceeds earmarked for meeting working capital requirements. On the other hand, the initial share sale of KRN Heat Exchanger involves a purely fresh issue of 1.93 Crore equity shares, with funds allocated for investment in its subsidiary, KRN HVAC Products, for setting up a new manufacturing facility in Rajasthan.

The shares of all three companies will be listed on both the BSE and NSE.