When Does the Go Digit IPO Open? Should You Subscribe? Everything You Must Know Is Here

Go Digit IPO: On May 15, Go Digit General Insurance Ltd., a company supported by Virat Kohli-Anushka Sharma and Canada-based Fairfax Group, will launch its initial public offering. The 2,615-crore initial public offering (IPO), which will end on May 17, consists of an offer-for-sale (OFS) of 5.47 crore equity shares by promoter Go Digit Infoworks Services and existing shareholders valued at Rs 1,490 crore, as well as a new issue of equity shares for Rs 1,125 crore.

Go Digit IPO: Dates of Subscription, Allocation, and Listing

The period of availability for the Go Digit IPO is May 15–May 17. Its final allocation is expected to occur on May 21, and on May 23, it will be listed on the BSE and NSE.

Go Digit IPO Cost and Lot Dimensions

A price range of Rs 258–272 per share has been set for the Go Digit IPO.

Investors must submit applications for multiples of at least 55 equity shares. Retail investors would thus need to spend a minimum of Rs 14,190 (55 (lot size) x Rs 258 (lowest price band)). At the top end, bids will be placed up to Rs 14,960.

Go Digit IPO: Quota Based on Category

Up to 75% of the issuance is designated for qualified institutional buyers (QIBs), 15% is set aside for non-institutional purchasers, and 10% is allocated to retail investors.

Go Digital with IPO GMP Now

Market watchers report that unlisted shares of Go Digit General Insurance Ltd. are selling on the grey market for Rs 47 more than the company’s issue price. Given the public issue, the grey market is anticipating a robust 17.28% listing gain, as shown by the Rs 47 grey market premium, or GMP. The GMP is dynamic and dependent on market mood.

The willingness of investors to pay above the issue price is shown by the “grey market premium.”

Go Digit IPO: Dangers

Go Digit has a history of disclosing losses.

2) The insurance regulator IRDAI has already issued warnings and show-cause letters to the corporation for apparent non-compliance with numerous regulatory prescriptions.

3) Motor vehicle insurance products are a major source of income and profitability for the company.

Is It Time to Subscribe to Go Digit?

Hem Securities research analyst Astha Jain gave the IPO a “Subscribe long-term” rating, saying, “We are giving long-term subscription recommendation.” Depending on the state of the market, listing gain could exist or not.

Go Digit is a full-time, digital tech insurance company. These are the businesses that regulatory bodies oversee and authorize. On the other hand, they incorporate technology into their underwriting and claims management processes. Among digital tech insurance providers, this firm has a significant market share of 82% based on gross premium.

“This company appears to be well-run, but the prices are excessive.” Our advise is to “subscribe,” but for a longer duration, just because of this increased cost. Listing gain might occur or not.

Go Digit: Additional Information

In addition to an Offer-for-Sale (OFS) of 5.47 crore equity shares by promoter Go Digit Infoworks Services and current shareholders valued at Rs 1,490 crore, Go Digit’s IPO consists of a new issue of equity shares valued at Rs 1,125 crore. At the high end of the pricing range, this brings the total amount of the IPO to Rs 2,615 crore.

Go Digit Infoworks Services now has an 83.3% ownership position in the business. It has been suggested that the corporation use the proceeds from the new issue for general corporate objectives, capital base expansion, and solvency maintenance.

Among the company’s investors are actress Anushka Sharma and cricketer Virat Kohli. They are not offering any IPO shares for sale. 10% is allocated to individual investors, 15% to non-institutional investors, and about 75% of the issue size has been set aside for eligible institutional investors. Investors may place bids in multiples of 55 equity shares, following the minimum of 55 equity shares.

To fulfill the demands of its clients, Go Digit provides liability insurance, health insurance, travel insurance, property insurance, marine insurance, and other insurance products. It is among the first non-life insurance companies in India to run entirely on the cloud, and it has integrated several channel partners using application programming interfaces (APIs).

The Securities and Exchange Board of India (Sebi) gave Go Digit permission to list the IPO in March. In August 2022, the firm submitted a draft red herring prospectus (DRHP) to Sebi in an attempt to obtain money via an initial share offering.

But the main reason it was defeated was because of certain compliance requirements related to the system for employee stock appreciation rights. On January 30, 2023, Sebi returned Go Digit’s draft IPO filings and requested that the firm refile them with the necessary revisions. After that, in April 2023, the business once again submitted its preliminary IPO paperwork to Sebi.

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