Get ready for Go Digit General Insurance IPO: Virat Kohli-backed company opens for subscription

Today marks the opening of the eagerly awaited stock market debut (IPO) of Go Digit General Insurance, endorsed by cricket superstar Virat Kohli. The subscription window is set to close on May 17. This IPO comprises a fresh equity issue of Rs 1,125 crore alongside an offer for sale (OFS) of up to 5.47 crore shares.

Under the OFS, promoter Go Digit Infoworks and existing shareholders will divest stakes, while Virat Kohli and Anushka Sharma remain investors. Back in 2020, Kohli acquired 2.66 lakh shares for Rs 2 crore, while his spouse Sharma invested 50 lakh via private placement.

The insurance firm aims to bolster its capital base and maintain solvency levels with the net proceeds. Analysts recommend subscribing to the IPO, citing advanced technology and predictive underwriting models as key strengths poised for continued growth.

Go Digit IPO quick facts:

Issue dates: May 15 to May 17, 2024

Price band: Rs 258-272 per share

Issue components: Fresh equity of Rs 1,125 crore and OFS of 5.47 crore shares

Objectives: Funds to support existing operations and finance proposed activities. Post-IPO, the company aims to utilize the net proceeds for business expansion and to enhance brand visibility.

Lot size: Minimum 55 shares

Allocation: 75% for QIBs, 15% for HNIs, 10% for Retail investors

Listing: BSE and NSE, expected on May 23, 2024

Financial performance and Future prospects:

For the nine months ending December 31, 2023, Go Digit recorded a net earned premium of Rs 5,115 crore, signaling robust growth.

Go Digit General Insurance Ltd. (GDGIL), a pioneering digital non-life insurance company in India. Leveraging cutting-edge technology, GDGIL revolutionizes product design, distribution, and customer experiences. In FY 2023, GDGIL dominated the market, accounting for 82.5% of Gross Written Premium (GWP), amounting to Rs. 66.80 billion in just nine months. With operations since 2017, GDGIL has expanded rapidly, maintaining a wide distribution network across 24 states and union territories. Offering a diverse range of insurance products, including motor, health, travel, property, marine, and liability insurance, GDGIL aims to simplify insurance for all. Its innovative approach has enabled it to capture a significant share of the market, making it the fastest-growing insurer among private non-life insurers. As it prepares for its maiden IPO, GDGIL continues its journey to transform the insurance landscape, focusing on growth, innovation, and customer satisfaction.