Go Digit General Insurance Ltd has filed preliminary papers with markets regulator Sebi for its initial public offering (IPO). The company, which is backed by Canada-based Fairfax Group, plans to issue an IPO comprising a fresh issuance of equity shares worth Rs 1,250 crore and an offer-for-sale (OFS) of 10,94,45,561 equity shares by a promoter and existing shareholders.
The proceeds from the IPO will be utilised to augment the company’s capital base and maintenance of solvency levels and general corporate purposes. According to a Reuters report, the overall IPO is likely to be worth Rs 3,500 crore ($440 million). However, Digit Insurance has not commented on the IPO’s size.
Under the offer for sale, Go Digit Infoworks Services Pvt Ltd will sell 10,94,34,783 equity shares. Also, the company may consider a pre-IPO placement of equity shares aggregating up to Rs 250 crore. If such placement is completed, the fresh issue size will be reduced.
Go Digit Infoworks Services will sell up to 109,434,783 shares through the OFS; Nikita Mihir Vakharia, jointly with Mihir Atul Vakharia up to 4,000 shares; Nikunj Hirendra Shah, along with Sohag Hirendra Shah (up to 3,778 shares); and Subramaniam Vasudevan, with Shanti Subramaniam (up to 3,000 shares).
Morgan Stanley India Company, ICICI Securities, Edelweiss Financial Services, Axis Capital, HDFC Bank and IIFL Securities are the book-running lead managers for the issue. After the IPO, the shares of the company will be listed on BSE and NSE.
IPO: About Go Digit General Insurance
Go Digit offers travel insurance, health insurance, motor insurance, property insurance, liability insurance and marine insurance, among other insurance products. The company is one of the first non-life insurers in India to be fully operated on the cloud and has developed application programming interface (API) integrations with several channel partners. It has 1,063 API integrations with partners and 16.57 million policies issued by partners with API integrations from its inception till March 31, 2022.
Go Digit General Insurance has cricketer Virat Kohli and his wife Anushka Sharma among the investors, according to the IPO papers.
The company has a track record of delivering growth with gross written premium (GWP) at Rs 5,268 crore, Rs 3,243 crore and Rs 2,252 crore in financial years 2022, 2021, and 2020, with a compound annual growth rate (CAGR) of 53 per cent from the financial year 2020 to the financial year 2022. However, it has posted a loss of Rs 295.86 crore in 2021-22, followed by Rs 122.27 crore in 2020-21, and Rs 175.24 crore in 2019-20.
Go Digit is a unicorn company. A unicorn company has a valuation of more than $1 billion.
(With inputs from PTI)
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