Go Digit General Insurance IPO: The price band for the Virat Kohli-backed Go Digit General Insurance Limited IPO has been set between ₹258 to ₹272 per equity share with a face value of ₹10. Subscription for the IPO is slated to commence on Wednesday, May 15, and conclude on Friday, May 17. Allocation to anchor investors is scheduled for Tuesday, May 14.
The lot size for the Go Digit General Insurance IPO is set at 55 equity shares, with multiples of 55 equity shares thereafter.
Allocation for the IPO is as follows: 75% of the shares are reserved for qualified institutional buyers (QIB), 15% for non-institutional Institutional Investors (NII), and 10% for retail investors.
The basis for share allocation is expected to be finalized on Tuesday, May 21. Refunds will commence on Wednesday, May 22, and shares will be credited to the demat accounts of allottees on the same day after the refund. The listing of Go Digit General Insurance shares is anticipated on both BSE and NSE on Thursday, May 23.
The company’s promoters include FAL Corporation, Oben Ventures LLP, GoDigit Infoworks Services Private Limited, and Kamesh Goyal.
Go Digit General Insurance Limited offers customizable insurance policies covering health, liability, property, marine, travel, and auto insurance, among other products. Currently, the company has 74 active products in its portfolio.
In 2020, cricketer Virat Kohli purchased 2.67 lakh shares of the company for ₹2 crore, while his wife, actress Anushka Sharma, invested 50 lakh through a private placement.
Listed peers of the company include New India Assurance Company Ltd (with a P/E of 38.47x), Star Health and Allied Insurance Company Ltd (with a P/E of 53.79x), and ICICI Lombard General Insurance Company Ltd (with a P/E of 48.14x).
The book running lead managers for the Go Digit IPO are ICICI Securities Limited, Morgan Stanley India Company Pvt Ltd, Axis Capital Limited, Edelweiss Financial Services Ltd, HDFC Bank Limited, and IIFL Securities Ltd. The issue’s registrar is Link Intime India Private Ltd.
Go Digit General Insurance IPO: Breaking Down the Details
The Go Digit General Insurance IPO includes a fresh issue of ₹1,125 crore and an offer-for-sale (OFS) of 54,766,392 equity shares by the promoters and other selling shareholders.
Among the selling shareholders, Go Digit Infoworks Services Private Ltd, the Promoter Selling Shareholder, plans to offload up to 54,755,614 equity shares. Additionally, Nikita Mihir Vakharia and Mihir Atul Vakharia, jointly, aim to sell shares up to 4,000 equity shares, while Nikunj Hirendra Shah and Sohag Hirendra Shah, jointly, intend to offload up to 3,778 equity shares. Furthermore, Subramaniam Vasudevan and Shanti Subramaniam, jointly, plan to sell up to 3,000 equity shares.
The Net Proceeds from the IPO will be utilized for current business operations and projects suggested to be supported by the Net Proceeds. Additionally, the company anticipates benefits from listing the equity shares on stock exchanges, expecting improvements in brand awareness and image among current and prospective consumers.
The book running lead managers for the Go Digit IPO are ICICI Securities Limited, Morgan Stanley India Company Pvt Ltd, Axis Capital Limited, Edelweiss Financial Services Ltd, HDFC Bank Limited, and IIFL Securities Ltd. The issue’s registrar is Link Intime India Private Ltd.
Today’s Go Digit IPO Grey Market Premium: What Investors Need to Know
The Go Digit IPO’s grey market premium (GMP) is reported to be +50, indicating that shares are trading at a premium of ₹50 in the grey market, as per investorgain.com.
It’s anticipated that Go Digit shares will debut on the stock exchange at a price of ₹322 per share, which is 18.38% higher than the IPO price of ₹272, factoring in the upper end of the IPO pricing range and the current premium in the grey market.
The grey market premium reflects investors’ willingness to pay more than the issue price for the shares.