Go Digit IPO: Virat-Anushka Backed Public Issue Attracts Subscription On Day 2; GMP Hints Premium Listing

The initial public offering (IPO) of Go Digit General Insurance Limited has attracted significant attention as it opened for subscription on Wednesday, set to run until Friday. Backed by cricketing icon Virat Kohli and Bollywood star Anushka Sharma, the company has fixed its IPO price band at Rs 258 to Rs 272 per equity share.

After just one day of bidding, the public issue worth Rs 1,489.65 crore has been oversubscribed by 0.36 times, indicating robust investor interest. Market observers note that the book build issue is gaining traction in the grey market, with Go Digit General Insurance Limited shares commanding a premium of Rs 46 today, up from Rs 45 the previous day.

Despite recent volatility in the Indian stock market, Go Digit IPO's grey market premium (GMP) has remained resilient, standing at Rs 46. Analysts find this stability reassuring, especially considering the broader market's three-day decline.

As of 11:09 am on the second day of bidding, the book build issue has seen increased interest, now subscribed 0.47 times. The retail portion has shown strong demand, oversubscribed at 1.91 times, while the Non-Institutional Investor (NII) segment stands at 0.44 times. However, the Qualified Institutional Buyers (QIB) segment is yet to show subscription.

According to BSE data, Go Digit General Insurance's initial public offering (IPO) garnered a subscription rate of 36% on its opening day. The IPO received bids for 1.89 crore shares, compared to the 5.28 crore shares on offer.

In the retail category, the public issue saw a subscription rate of 1.44 times, totalling 1,38,80,460 shares, while in the Non-Institutional Investors (NIIS) category, it reached a subscription rate of 0.34 times, amounting to 49,73,155 shares, as per stock exchange data at 5 pm on May 15.

Go Digit is known for its insurance solutions and offers a diverse portfolio covering motor, health, travel, property, marine, and liability insurance, all customizable to individual needs.

With a distribution network spanning 24 states and union territories in India, bolstered by partnerships with nearly 62,000 Key Distribution Partners, including agents, corporate entities, and brokers. In the fiscal year's third quarter of 2024, Go Digit reported a gross written premium (GWP) of Rs.66.8 billion, marking a 26.3% increase from the same period last year. Notably, its GWP has seen a compound annual growth rate (CAGR) of 49.4% from FY21 to FY23.

Go Digit's IPO narrative is the involvement of celebrity power couple Virat Kohli and Anushka Sharma, affectionately known as 'Virushka.' The duo has demonstrated their faith in Go Digit's potential by making substantial investments in the company. Virat Kohli holds 266,667 Go Digit shares, while Anushka Sharma owns 66,667 shares, all acquired at a price of Rs 75 each.

The strong subscription figures and sustained grey market premium suggest growing confidence in Go Digit General Insurance Limited's IPO. With renowned personalities like Virat Kohli and Anushka Sharma endorsing the offering, investors are closely watching the developments, expecting a successful debut for the insurance company in the public markets.

With Virat Kohli and Anushka Sharma's stamp of approval, Go Digit IPO promises a compelling mix of innovation, growth, and celebrity endorsement, making it one of the most intriguing offerings in the insurance sector to watch out for.