Go Digit General Insurance IPO to open on 15th May

Virat Kohli (Indian cricketer) and Anushka Sharma (Indian actress) backed Go Digit General Insurance IPO is announced to open on 15th May 2024. Investors can apply for its shares till 17th May, 4 pm. Besides, Go Digit will go public and be listed on NSE and BSE on 23rd May, 10 am.

Price band of Go Digit IPO is fixed at ₹258-₹272 per equity share. You can apply for a minimum 55 shares amounting to ₹14,960 (better to go for max bid to increase chances of allotment).

Go Digit is an 8-year old Pune-based company. It provides bike, car, health, travel, property, marine, liability, and more types of general insurance policies. The company also has unique customized insurance like the ‘pay per km’ on bike and car insurance. Additionally, It is one of India's first non-life insurers to fully operate on the cloud and has developed Application Programming Interface (API) integrations with several channel partners like Policy Bazaar, PhonePe, and Paytm.

Go Digit IPO has a fresh share sale of ₹1,125 crore. Besides, offer-for-sale is of upto 5,47,66,392 equity shares (retail investors like you & me have a 10% quota i.e. 54.76 lakh shares) amounting to ₹1,489.65 crore. The company is looking to raise a total of ₹2,614.65 crore (IPO size).

The company reported net profit of ₹129.02 crore with a revenue of ₹130.83 crore from April-Dec 2024. Moreover, it first became profitable in FY 2022-23 with ₹35.54 crore profit and ₹39.19 crore revenue. However, it received a bit of a setback a week back when the Insurance Regulatory and Development Authority of India (IRDAI) imposed a penalty of ₹1 crore on the company for non-disclosure of a change in the conversion ratio of compulsorily convertible preference shares (CCPS) issued by its parent company to Fairfax-owned FAL Corporation.

As per Go Digit IPO’s RHP, Virat Kohli and Anushka Sharma are shareholders with 2,66,667 (₹2 crore) and 66,667 (₹50 lakh) equity shares respectively. Both invested in this company 2 years back and as of now Kohli is its brand ambassador. Both will not sell any shares in this IPO so will remain to be the shareholders.

Talking about Go Digit’s work, it has 74 active products across all its business lines. As of 31st Dec 2023, it had 61,972 partners including 58,532 POSPs and other agents. Moreover, it had distribution centers in 24 states and union territories in India with 473 active bots to automate tasks for functions and partners.

Go Digit IPO’s GMP Today (10th May) is ₹40 as per which minimum (55 shares) listing profit will be ₹2,200. Yesterday it was ₹50. It is expected to rise as the IPO progresses in the remaining 5 days. Stay tuned for its upcoming GMP updates as the Go Digit IPO seems to be promising.

Disclaimer: This article is for informational purposes only so you can consult your financial advisor before making any investment decisions.

ICICI Securities, Morgan Stanley India Company, Axis Capital, Nuvama Wealth Management, HDFC Bank and IIFL Securities are the book running lead managers of Go Digit IPO.