SEBI approves the IPO for Go Digit, supported by Virat Kohli
The Securities and Exchange Board of India (SEBI), the market regulator, has given the go-ahead for Go Digit General Insurance Ltd., an insurance company that is optimistic about the internet market, to begin its initial public offering (IPO).
Supported by cricketer Virat Kohli and his wife Anushka Sharma, the company encountered several obstacles related to compliance, which caused the public offer’s permission to be postponed.
The Draft Red Herring Prospectus (DRHP) for Go Digit’s planned IPO states that promoter Go Digit Infoworks Services and current shareholders would offer 10.94 crore shares for sale as well as issue new shares valued at Rs 1,250 crore.
According to SEBI, the agency provided its assessment on March 1. Getting an observation letter, as they say in SEBI jargon, is the regulator’s green light to start the public offering.
The corporation would use the proceeds from the new issue to maintain levels of solvency, increase its capital base, and pursue other general corporate objectives.
Also supporting Go Digit General Insurance Ltd. is the Canada-based Fairfax Group.
It had originally filed the DRHP with SEBI in August 2022 in an attempt to acquire capital via an initial share offering, but the employee stock appreciation rights scheme’s compliance requirements mostly prevented that from happening.
Additionally, on January 30, 2023, the market regulator returned Go Digit’s draft IPO filings and requested that the business refile them with the necessary modifications.
Digit General Insurance submitted an update to its IPO paperwork in November of last year, claiming that the IRDAI had sent it a show-cause notice for failing to disclose a change in the conversion ratio of the preference shares that Fairfax had been granted that were required to be convertible.
The offer document was returned by SEBI later in January 2023, with comments on the employee stock options and the lock-in period for shareholders and promoters.
On April 6, the business fixed the problems and refiled the offer document.
