Go Digit Targets Rs 2,615 Crore IPO with Price Band of Rs 258-272 Per Share

Following this, the company again filed the preliminary IPO papers with Sebi in April 2023.ICICI Securities, Morgan Stanley India Company, Axis Capital, HDFC Bank, Nuvama Wealth Management and IIFL Securities are book running lead managers to Go Digits IPO.

Go Digit General Insurance Ltd, a firm backed by Canada-based Fairfax Group, on Friday fixed a price band of Rs 258-272 per share for its Rs 2,615-crore initial public offering (IPO).

The initial share-sale will open for public subscription during May 15-17 and the bidding for anchor investors will open for a day on May 14, the company announced.

Go Digit's proposed IPO comprises fresh issuance of equity shares worth Rs 1,125 crore and an Offer-for-Sale (OFS) of 5.47 crore equity shares by promoter Go Digit Infoworks Services and existing shareholders worth Rs 1,490 crore.

This takes the total IPO size to Rs 2,615 crore at the upper end of the price band.

At present, Go Digit Infoworks Services owns 83.3 per cent stake in the company.

Proceeds from the fresh issuance have been proposed to be utilised for the augmentation of the company's capital base and maintenance of solvency levels and general corporate purposes.

Cricketer Virat Kohli and his wife and actor Anushka Sharma are among the investors in the firm. They are not selling any share in the IPO.

About 75 per cent of the issue size has been reserved for qualified institutional investors, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors. Investors can bid for a minimum of 55 equity shares and in multiples of 55 equity shares thereafter.

Go Digit offers motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and other insurance products, to meet the needs of the customers.

It 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.

In March, Go Digit secured the approval from the Securities and Exchange Board of India (Sebi) to float the IPO.

The company had first filed the draft red herring prospectus (DRHP) with the Sebi in August 2022, to raise funds through an initial share sale.

However, it was thwarted primarily due to certain compliance requirements pertaining to the employee stock appreciation rights scheme.

Sebi returned Go Digit's draft IPO papers on January 30, 2023 and asked the company to refile the documents with certain updates. Following this, the company again filed the preliminary IPO papers with Sebi in April 2023.

ICICI Securities, Morgan Stanley India Company, Axis Capital, HDFC Bank, Nuvama Wealth Management and IIFL Securities are book running lead managers to Go Digit's IPO.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)