Virat Kohli and Anushka Sharma backed Go Digit went live on the bourses on May 23. The shares were listed at Rs 286 per piece, a premium of 5 per cent to the issue price.
The listing gains are largely in line with grey market estimates where shares were trading at a premium of 3 per cent. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day.
The Rs 2,614.65-crore public offer, in which Virat Kohli and Anushka Sharma are investors, was subscribed 9.6 times. The offer received bids for 50.76 crore shares against 5.28 crore shares. The public issue was subscribed 4.27 times in the retail category. Non-institutional investors bought 7.24 times their allotted quota. The portion for qualified institutional buyers (QIBs) was booked 12.56 times their portion.
The Indian cricketer Virat Kohli bought 26,667 equity shares of Go Digit through a private placement on February 14, 2020. While Virat’s better half – Anushka Sharma – owns 66,667 shares in the company.
Go Digit General Insurance is an insurance-providing company that offers motor insurance, travel insurance, property insurance, and many other insurance products. The customers can customise these products according to their needs. As of now, the company has launched a total of 74 active products across all its business segments.
Morgan Stanley India Company, ICICI Securities, HDFC Bank, IIFL Securities, Axis Capital, and Nuvama Wealth Management were the book-running lead managers. Link Intime India has been chosen as the registrar for the issue.
What Should Investors Do Now?
Shivani Nyati, Head of Wealth, Swastika Investmart Ltd., said: “Go Digit, the fast-growing general insurance company, witnessed a moderate debut on the stock exchanges, listing at Rs. 286 per share. This translates to a 5.15 per cent gain over its issue price of Rs. 272. While positive, this performance falls short of pre-listing expectations and the grey market premium (GMP) which suggested a potential gain of around 10 per cent. Go Digit’s position as the fastest-growing private non-life insurer by GWP in India positions it for continued success in the dynamic insurance market. The company’s advanced technology platform and focus on innovation bode well for its future. Go Digit’s moderate listing necessitates a balanced approach from investors. While the company possesses strong long-term potential, careful consideration of the valuation and competitive landscape is crucial. Investors may hold their position by keeping a stoploss at the issue price.”
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