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- By Aditya Pratap Singh
- Thu, 09 May 2024 02:41 PM (IST)
- Source:PTI
Go Digit IPO: Go Digit General Insurance Ltd, which the Canada-based Fairfax Group backs, is preparing to launch its initial public offering (IPO) on May 15. The IPO will close on May 17, and bidding for anchor investors will open for one day on May 14, according to the red herring prospectus (RHP).
Go Digit's planned IPO comprises the sale of new equity shares worth Rs 1,125 crore and an offer for sale (OFS) of 5.47 crore equity shares by the promoter and current shareholders of Go Digit Infoworks Services. Go Digit Infoworks Services currently holds an 83.3 percent stake in the company.
The proceeds from the new issue are expected to increase the company's capital base, maintain its solvency level, and for general corporate purposes. Cricketer Virat Kohli and his wife and actress Anushka Sharma are among the company's investors. They will not be selling any shares in the IPO.
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In March, Go Digit received approval from the Securities and Exchange Board of India (SEBI) to launch an IPO. The company first filed a draft red herring prospectus (DRHP) with SEBI in August 2022 to raise funds via the initial share sale. It was, however, thwarted primarily because of certain compliance requirements connected to the Employee Stock Appreciation Rights Plan.
On January 30, 2023, SEBI returned Go Digit's draft IPO papers and requested the firm to refile the papers with some updates. The company then refiled preliminary IPO papers with SEBI in April 2023. Go Digit offers motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and other insurance products to meet the demands of its customers.
It is one of the first non-life insurance firms in India to completely function on the cloud and has developed application programming interface (API) integration with numerous channel partners. Go Digit's IPO is being led by book-running lead managers ICICI Securities, Morgan Stanley India Company, Axis Capital, HDFC Bank, Nuvama Wealth Management, and IIFL Securities.
(With PTI's Input)
