Go Digit General Insurance's IPO: All You Need To Know About Virat Kohli-Backed Offering

Go Digit General Insurance Ltd. will launch its three-day initial public offering on Wednesday to raise over Rs 2,600 crore. The Virat Kohli-backed startup's IPO consists of a fresh issue of equity shares of face value of Rs 10 each, aggregating up to Rs 1,125 crore. The offer-for-sale portion will be worth Rs 1,489.6 crore at the upper end of the price band, which has been fixed in the range of Rs 258–272 per share.

Promoter Go Digit Infoworks Services Pvt. will offload 5.74 crore equity shares as a part of the OFS, which were acquired at a weighted average cost of Rs 13.57 per share. Selling at the upper end of the price band would get them a profit of Rs 1,415 crore.

The Pune-based company aims to utilise the net proceeds towards maintenance of its solvency ratio, according to the red herring prospectus.

Anchor portion of the IPO will open on May 14. Shares of Go Digit Insurance will be listed on both BSE and National Stock Exchange. Investors can check the Go Digit IPO Allotment status on May 21,

Issue Details

• Issue opens: May 15

• Issue closes: May 17

• Issue price: Rs 258–272 per share.

• Fresh issue: Rs 1,125 crore.

• Offer for sale: Rs 1,489.6 crore.

• Total issue size: Rs 2,614.6 crore.

• Bid Lot: 55 shares.

• Listing: BSE and NSE.

Business

The full-stack digital insurance company offers motor, health, travel, property, marine, liability and other insurance products, which can be customised based on customers' needs.

The number of customers for the company as on Dec. 31, 2023, stood at 4.32 crore. It has launched a total of 74 active products across its business lines and has relationships with approximately 61,972 key distribution partners.

Key Risks

• The company has a track record of reporting loss and has disclosed that it may not be able to maintain profitability in the future.

• Its loss reserves are based on estimates as to future claims liabilities and if they prove inadequate, it could lead to further increases in reserves.

• Catastrophic events, including natural disasters, can materially increase their liabilities for claims by customers.

• There are outstanding legal proceedings involving our company and their promoters and directors.

• Changes in interest rates or adverse movements in the equity markets in India can impair the value of investment portfolio and have a material adverse effect on business.