Talk of the town - Go Digit IPO - here's a quick snapshot
Go Digit General Insurance Limited is one of the leading digital full stack insurance companies that believes in delivering a seamless customer experience through innovation and transparency.
Their upcoming IPO has gained a lot of attention and encouraged potential investors to know more. So, here’s a snapshot of all the important information about Go Digit as a potential investment opportunity.
Company overview
Go Digit, which was established in 2016, is one of the leading digital insurance companies in the country with a goal to simplify non-life insurance products for consumers. Their insurance products include motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance and other insurance products, which the customers can customise according to their needs. As a digital full stack insurance company, they offer a combination of insurance and technology solutions to assist in enrolment, insurance claims processing, underwriting, policy administration, data insights and fraud detection. Go Digit is one of the leading digital full-stack Non-Life insurers in India as per the commissioned RedSeer report by the volume of premiums received (GWP). They held an 82.5% market share among digital full-stack insurers for the first nine months of 2023.
Source: RHP
What's included in the IPO?
Go Digit's IPO is a mixture of fresh issuance of shares (to raise new capital) and an offer for sale (existing shareholders selling shares). The new-issue net proceeds will be used to keep up with their solvency ratio as required by the regulations.
Price & allocation:
- The price band of the public offer is in the range: ₹258 - ₹272 per share and the company is expected to raise ₹ 2,537.97 crore at the lower end of the price band and ₹ 2,614.65 crore at the upper end with a lot size of 55 shares at ₹ 14,960.
- Shares will be divided among institutional buyers (QIBs), non-institutional buyers, and retail investors.
Offer for sale details:
Existing shareholders sell a portion of their shareholding as part of the offer for sale. The information below includes information about the selling shareholders, the quantity of shares offered, and their weighted average cost of acquisition per share.
| Selling Shareholder | Type | Number of Shares Offered | Aggregated Amount (? million) | Weighted Average Cost per Share (?) |
|---|---|---|---|---|
Go Digit Infoworks Services Private Limited | Promoter Selling Shareholder | Up to 54,755,614 | Not Determined | 13.57 |
Nikita Mihir Vakharia & Mihir Atul Vakharia | Other Selling Shareholder | Up to 4,000 | Not Determined | 172 |
Nikunj Hirendra Shah & Sohag Hirendra Shah | Other Selling Shareholder | Up to 3,778 | Not Determined | 250.57 |
Subramaniam Vasudevan & Shanti Subramaniam | Other Selling Shareholder | Up to 3,000 | Not Determined | 221.2 |
Source: RHP
Key dates:
- Bid/Offer Opens: Wednesday, May 15, 2024
- Bid/Offer Closes: Friday, May 17, 2024
- Anchor Investor Bid/Offer Period: One Working Day before Bid/Offer Opening Date (May 14, 2024)
- UPI Mandate End Time: 5.00 p.m. on Bid/Offer Closing Date (May 17, 2024)
Source: RHP
Tentative Timeline:
- Finalisation of Basis of Allotment: On or about Tuesday, May 21, 2024
- Refunds Initiation/Fund Unblocking: On or about Wednesday, May 22, 2024
- Shares Credited to Allottees: On or about Wednesday, May 22, 2024
- Trading Commencement: On or about Thursday, May 23, 2024
Source: RHP
Key takeaways:
- Go Digit is present in a large and fast-growing market with its primary addressable market being the non-life insurance market in India (the world’s fifth largest economy as of 2023).
- The insurance market is still unpenetrated and therefore has a lot of room for improvement and growth.
- Owing to the rapidly growing middle class, rising awareness about insurance protection, innovative products, growth in associated industries, and a favorable regulatory landscape, India’s non-life insurance market is expected to continue to grow.
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
