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Go Digit IPO: The Rs 2,615-crore initial public offer (IPO) of Go Digit Insurance opened for subscription on Wednesday, May 15.
The offer, with a price band of Rs 258 to Rs 272 per equity share, will close for subscription on Friday, May 17, 2024.
The IPO of the Bengaluru-based insurance firm is a book-built issue, which is a combination of fresh issue of 41.4 million shares, worth Rs 1,125.00 crore, and offer for sale (OFS) of 54.8 million shares aggregating to Rs 1,489.65 crore.
Go Digit Subscription status
The insurance company's issue was subscribed 24 per cent till 2 PM on day 1 of the offer. While the retail portion was fully subscribed at 1.09x, portion reserved for NIIs saw subscription of 16 per cent. CHECK LIVE UPDATES HERE
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Go Digit Anchor investors
Ahead of the IPO, Go Digit Insurance raised Rs 1,176.59 crore from anchor investors on May 14, 2024.
According to the company's exchange filing, it allocated 43.25 million equity shares to anchor investors at a price of Rs 272 per share.
Among the marquee investors, Fidelity Investment Trust bagged the maximum allotment of 7.95 per cent. Besides, Bay Pond Partners L.P., Goldman Sachs, Abu Dhabi Investment Authority (ADIA), Schroder International, East Spring Investments India, and Custody Bank of Japan were some of the prominent foreign investors.
Domestically, SBI Mutual Fund, ICICI Prudential Mutual Fund, Axis Mutual Fund, Mirae Asset Mutual Fund, HDFC Life Insurance, ITPL Invesco India Mutual Fund, Tata Mutual Fund, Volrado Venture Partners Fund, Motilal Oswal Mutual Fund, Edelweiss Trusteeship Co Ltd AC, Max Life Insurance, Tata AIA Life Insurance Company, Bajaj Allianz Life Insurance Company, and Morgan Stanley Asia (Singapore) PTE ODI picked stake in Go Digit IPO as anchor investors.
About Go Digit Insurance
Go Digit is a Bengaluru-based full-stack digital insurance company offering motor, health, travel, property, marine, liability and other insurance products.
The company provides customised insurance policies, and has launched a total of 74 active products across all its business lines so far.
The company is backed by Indian cricketer Virat Kohli (holding roughly 266,667 shares), and actor and producer Anushka Sharma (having around 66,667 shares).
Go Digit GMP
Go Digit Insurance's stock was commanding a slightly lower grey market premium on Wednesday, May 15. Go Digit's IPO slipped to Rs 45 per share today from Rs 50 per share on Tuesday, May 14.
Should you subscribe?
Swastika Investmart | Subscribe
Go Digit's financial performance has shown recent improvement, although they are still navigating operating losses. The insurance industry faces inherent risks, including stringent regulatory requirements and the potential for catastrophic events to significantly increase claim liabilities. Additionally, Go Digit has a high dependence on its motor vehicle insurance product.
Despite the aggressive valuation relative to recent earnings and operating losses, Go Digit's strong technological capabilities and its position in a growing market suggest potential for future profitability. Considering these factors, we recommend a subscribe rating for this IPO.
SMIFS Ltd | Subscribe for long-term
With an expanding product portfolio, including offerings such as OPD Health, Life Science Liability, Supreme Care Policy, and Health Top-Up products, Go Digit is well positioned to capitalize on future growth opportunities.
The company's operating loss is gradually decreasing from Rs 185.49 crore in FY21 to Rs 10.12 crore in 9MFY24. This is expected to continue in FY25. In light of the robust growth the company has been able to deliver and is expected to deliver coupled with robust industry prospects in India, we recommend subscribing to the issue as a good long term investment.
Mastertrust Broking | Subscribe for long-term
Go Digit General Insurance Limited is focused on achieving growth in new customer acquisition and deepening existing customer relationships. The company also intends to expand into new geographies within India and grow its product portfolio to meet the market needs and drive further adoption across its product suite.
Along with that, the company is continuously investing in technology to optimise customer experience and boost operating leverage. We recommend subscribing to this IPO, with a medium to long term perspective, given the huge growth and margin expansion potential.
