The retail portion was fully subscribed at 2.03 times around this time while the non-institutional investors’ portion was booked 0.48 times. As for the qualified institutional buyers (QIBs), the issue was yet to receive bids.
The IPO will close on May 17.
Ahead of the issue opening, the Bengaluru-based insurtech startup raised about Rs 1,176 crore in the anchor round, where Fidelity Investments, Goldman Sachs, ADIA and Custody Bank of Japan were among investors.
The offer is a mix of a fresh issue of Rs 1,125 crore and an offer for sale of up to 54.77 million equity shares by promoters and other selling shareholders.
In 2020, cricketer Virat Kohli bought 2.66 lakh shares of the company for Rs 2 crore while actress wife Anushka Sharma invested Rs 50 lakh through a private placement.The insurance firm plans to utilise the net proceeds towards augmenting its capital base and maintaining the solvency levels. Also Read: Awfis Space Solutions IPO price band fixed at Rs 364-383; offer to open on May 22Go Digit Insurance IPO review
Analysts advised investors to subscribe to the issue as their advanced technology platform and predictive underwriting model positions well for continued innovation and growth.
“Despite the aggressive valuation relative to recent earnings and operating losses, Go Digit’s strong technological capabilities and its position in a growing market suggest potential for future profitability. Considering these factors, we recommend a subscribe rating for this IPO,” said Swastika Investmart.
Go Digit IPO GMP
In the unlisted market, the company’s shares are trading with a GMP of Rs 45, slightly lower than the previous week.
Go Digit Insurance IPO price band
The company has fixed a price band of Rs 258-278 per share for its maiden public offer. At the upper end, the company plans to raise Rs 2,615 crore.
Investors can bid for a minimum of 55 shares in one lot and in multiples thereafter. About 75% of the public offer is reserved for QIB (qualified institutional buyers) investors, 15% for non-institutional investors and the remaining 10% for retail investors.
Other details
Go Digit is a leading digital full-stack insurer and the fastest-growing private non-life insurer by GWP in India. They offer a simplified and customized customer experience, with a strong focus on empowering their distribution partners.
In the nine-month period ending December 2023, Go Digit’s net earned premium rose to Rs 5,115 crore vs Rs 3,767 crore in the corresponding period of the previous financial year. It reported a profit after tax of Rs 129 crore in the 9-month period vs Rs 10 crore in the first 9 months of FY23.
ICICI Securities, Morgan Stanley India, Axis Capital, Edelweiss Financial Services, HDFC Bank, and IIFL Securities are the book-running lead managers for the IPO.
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