Want to Subscribe to Go Digit General Insurance Ltd’s IPO? Read This First
Key Highlights:
- Go Digit General Insurance Ltd’s IPO issue size is Rs 2614.65 crores at the higher price band
- The minimum investment is Rs 14,960
- The listing date on exchanges is 23rd May
Go Digit General Insurance Ltd has joined the long list of companies looking to launch its initial public offering (IPO) this month. If you want to know the key details of this IPO and whether you should subscribe to it or not, read this blog.
About Go Digit General Insurance Ltd
Go Digit General Insurance Ltd is a leading digital full stack insurance company. It offers non-life insurance products, such as motor insurance, health insurance, travel insurance, property insurance, marine insurance, and liability insurance, among others.
IPO details and objectives
The table captures other details of the IPO that comprise a fresh issue and offer for sale:
| Particulars | Key Information |
|---|---|
IPO Open Date | 15th May |
IPO Close Date | 17th May |
Issue Price Range | Rs 258-Rs 272 |
Issue Size | Rs 2614.65 crore at the higher price band |
Lot Size | 55 |
Minimum Investment | Rs 14,960 |
Face Value | Rs 10 |
Listing Date | 23rd May |
The company plans to use the proceeds received to:
- Maintain its solvency ratio
- Bridge financing facilities
Source: RHP, Moneycontrol and Kotak Securities
Financial snapshot
It’s essential to be aware of the financials of a company before investing in its IPO. The table reflects some of the key financials of Go Digit General Insurance Ltd:
| Particulars | FY 23 | FY 22 | FY 21 |
|---|---|---|---|
Net cash flow from operating activities (in crores) | Rs 2249.752 | Rs 2478.997 | 1563.369 |
Profit after tax (in crores) | Rs 35.547 | -295.851 | -122.764 |
Gross written premium (in crores) | Rs 7242.985 | Rs 5267.633 | Rs 3243.388 |
Return on equity | 1.5 | -15.9 | -10.8 |
Diluted earnings per shares | 0.4 | -3.55 | -1.5 |
Source: RHP
Basis of offer price, management and BRLM
In its RHP, the company has listed some qualitative business strengths that allow it to compete in the industry and form the basis for its offer price. These are:
- Simple and tailored customer experience
- Focus on empowering its distribution partners
- Predictive underwriting models
- Advanced technology platform
- A nimble organisation with a skilled and experienced management team
The company’s management includes the following people:
- Kamlesh Goyal (Non-executive Chairman)
- Jasleen Kohli (MD and CEO)
- Chandran Ratnaswami (Non-executive Director)
- Rajendra Beri (Independent Director)
- Vandana Gupta (Independent Director)
- Christof Mascher (Independent Director)
The book-running lead managers (BRLM) of the company’s IPO are:
- ICICI Securities Limited
- Morgan Stanley India Company Private Limited
- Axis Capital Limited
- HDFC Bank Limited
- IIFL Securities Limited
- Nuvama Wealth Management Limited
For a complete overview of the risks involved, refer to the company’s red herring prospectus here.
Wrapping it up
Before subscribing, consider your financial goals and risk appetite. Seek help from a professional, if needed.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI prescribed Combined Risk Disclosure Document prior to investing. Brokerage will not exceed SEBI prescribed limit.
Source: RHP
FAQs on Go Digit Insurance Ltd’s IPO
Is Go Digit a listed company?
Not yet. However, it will soon be a listed company after its IPO. The company will be listed on 23rd May.
What is the issue price range of Go Digit Insurance Ltd’s IPO?
The issue price range is Rs 258-Rs 272.
