 "Life Insurance, Insurance")
Go Digit General Insurance (Go Digit) made a quiet stock market debut with its shares listed at Rs 286, a 5 per cent premium when compared to its issue price of Rs 272 per share on the National Stock Exchange (NSE) on Thursday. On the BSE, the stock of the general insurance company listed at Rs 281.10, a 3.3 per cent premium to its issue price.
Post listing, the stock moved higher to Rs 294.75, up 8 per cent from its issue price on the NSE. At 10:03 am; Go Digit stock was trading at Rs 294.15 after hitting a low of Rs 280 in intra-day trades. A combined 21.8 million equity shares changed hands on the NSE and BSE.
The Go Digit General Insurance IPO had received decent response with the issue oversubscribed up to 9.6 times. The public issue was subscribed 4.27 times in the retail category, 12.6 times in the qualified institutional buyers (QIB) category, and 7.2 times in the non-institutional investor (NII) category.
Go Digit offers motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and other insurance products, to meet the needs of the customers. It is one of the first non-life insurers in India to be fully-operated on the cloud and has developed application programming interface (API) integrations with several channel partners.
Go Digit aims to simplify insurance process through innovation and transparency. The company believes in delivering effortless customer experience journey in a significant financial product an individual would purchase. They implement combination of insurance and technology solutions to assist in enrolment, insurance claims processing, underwriting, policy administration, data insights, and fraud detection.
Go Digit aims to simplify insurance process through innovation and transparency. The company believes in delivering effortless customer experience journey in a significant financial product an individual would purchase. They implement combination of insurance and technology solutions to assist in enrolment, insurance claims processing, underwriting, policy administration, data insights, and fraud detection.
As of FY23, Go Digit hled 2.4 per cent overall market share and 5.4 per cent motor insurance market share in terms of Gross Written Premium (GWP). By December 31, 2023, Go Digit had established a broad distribution network spanning 24 states in India, with 61,972 distribution partners, including 58,532 Point of Salespersons (POSPs) and other agents, alongside 473 active bots designed to automate tasks for various functions and partners.
At the upper price band of Rs 272, Go Digit was available at a P/B of 10.2x (FY23), which is expensive compared to peers. However, given its healthy business momentum with robust growth in premium income, and its strategic positioning to seize opportunities within the under penetrated non-life insurance market, along with an improving financial profile, the company is well poised for bright prospects, Geojit Financial Services said in the IPO note.
Go Digit is a market leader (6 per cent market share) in incremental growth in motor insurance. The company has been slowly gaining strength in the other insurance product & the overall market share of the company is at 3 per cent. Going ahead, SBI Securities expect the company to do well as the scope of general insurance is huge due to low penetration in India.
