Go Digit General Insurance Gets SEBI Nod To Raise Rs 1250 Cr Via IPO

The Securities and Exchange Board of India (SEBI), the capital markets regulator, has given new-age insurer Go Digit General Insurance Limited its final approval to raise funds through an initial public offering (IPO).

At a face value of Rs 10, the public offering consists of a mix of fresh equity shares up to Rs 1250 crore and an offer-for-sale (OFS) of up to 109,445,561 equity shares by the promoter and other selling shareholders.

These include up to 109,434,783 equity shares by Go Digit Infoworks Services Private Limited, up to 4,000 equity shares by Nikita Mihir Vakharia, in partnership with Mihir Atul Vakharia, up to 3,778 equity shares by Nikunj Hirendra Shah, in partnership with Sohag Hirendra Shah, and up to 3,000 equity shares by Subramaniam Vasudevan, in partnership with Shanti Subramaniam (selling shareholders). The issue also includes a reservation for subscription by eligible employees.

In addition, the company may think about a pre-IPO placement of equity shares or any other strategy totalling up to Rs. 250 crores in collaboration with merchant bankers to the issue. Once this placement is finished, the size of the new issue will be reduced.

The company plans to use the Rs. 1250 crore proceeds from its latest offering to support its broad corporate objectives, maintain solvency levels, and increase its capital base.

The registrant of the offer is Link Intime India Private Limited, while the book-running lead managers are ICICI Securities Limited, Morgan Stanley India Company Private Limited, Axis Capital Limited, Edelweiss Financial Services Limited, HDFC Bank Limited, and IIFL Securities Limited. The equity shares are proposed to be listed on BSE and NSE.

To fulfil the demands of its customers, Go Digit provides liability insurance, health insurance, travel insurance, property insurance, marine insurance, and other insurance products. As stated in the DRHP, RedSeer studies that the company commissioned states that, in terms of Gross Written Premium (GWP) growth among private non-life insurers in Fiscal 2022, it was among the fastest growing.