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Business News/ Markets / Ipo/  Go Digit IPO fully booked on the last day of bidding: Check subscription updates, GMP, other details
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Go Digit IPO fully booked on the last day of bidding: Check subscription updates, GMP, other details

Go Digit IPO subscription at 5.38 times on day three. Retail investors oversubscribed at 3.47 times, non-institutional investors at 2.76 times.

Go Digit IPO subscription status: The initial public offer of Go Digit General Insurance has been fully booked on the last day of bidding. (Photo: Courtesy company website)Premium
Go Digit IPO subscription status: The initial public offer of Go Digit General Insurance has been fully booked on the last day of bidding. (Photo: Courtesy company website)

Go Digit IPO subscription status: The initial public offer of Go Digit General Insurance, has been subscribed 9.60 times on day three of bidding today.

The initial share sale received bids for 50,76,21,455 shares against 5,28,69,677 shares on offer, as per BSE data.

The retail individual investors (RIIs) portion has been subscribed 4.27 times, while the quota for non-institutional investors has received 7.24 times subscription. Qualified institutional buyers (QIBs) part has fetched 12.56 times subscription.

Also Read: Go Digit IPO last bidding date today: Should you subscribe or not? Check GMP, subscription status, other details

According to Arun Kejriwal, founder of Kejriwal Research and Investment Services, QIBs are expected to chip in after 13:30–14:00 IST as usual, so one cannot take a current subscription and get a number of what will have on 17:00 IST. Talking about the business, Kejriwal believes that it's an interesting business and the fastest turnaround company in the space. In less than seven years, its profitable, and as you go forward, the combined ratios that they call it are similar to what in a banking space would be the capital adequacy ratio. That number is increasing; while they are required to have 1.5 times, they are over 1.6 times. It shows that they are liquid. Retail and HNI are not very enthuse, as they don't understand insurance in any case, as it's a tough sector for them. And the fact that grey market is not very healthy in terms of percentage explains why the subscriptions in both of these segments are slow.

The Go Digit General Insurance IPO, which opened for subscription on Wednesday, May 15, ends today (Friday, May 17). The Go Digit IPO was subscribed 79% on the second day of bidding on Thursday, as per BSE data. On the first day of bidding, Go Digit General Insurance IPO subscription status was 36%, as per BSE data.

Also Read: Go Digit IPO: Issue booked 79% on day 2, retail investors steal the show; check latest GMP

About 75% of the issue size has been reserved for qualified institutional investors, 15% for non-institutional investors and the remaining 10% for retail investors.

The company is one of the top digital full stack non-life insurance providers, according to the Red Herring Prospectus (RHP). They use technology to drive what they see as an inventive approach to non-life insurance product design, distribution, and customer experience.

The company's promoters include FAL Corporation, Oben Ventures LLP, GoDigit Infoworks Services Private Limited, and Kamesh Goyal.

The company's 2.67 lakh shares was bought by cricket player Virat Kohli for 2 crore in 2020, while his wife, actress Anushka Sharma, invested 50 lakh in a private placement.

Between March 31, 2022, and March 31, 2023, Go Digit General Insurance Limited's profit after tax (PAT) climbed by 112.01% and its revenue increased by 113.35%.

Also Read: Go Digit IPO day 2: GMP, subscription status, price to review. Should you apply to this Virushka-backed IPO?

Go Digit IPO details.
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Go Digit IPO details.

Go Digit IPO subscription status live

The retail investors' segment received bids for 4,10,11,300 shares against 96,12,668 shares on offer for this segment, as per BSE data.

The NIIs portion got bids for 10,43,40,610 shares against 1,44,19,002 on offer for this segment.

The QIBs segment got bids for 36,22,69,545 shares against 2,88,38,007 on offer for this segment.

Also Read: Go Digit General Insurance Limited IPO: 10 key risks investors should know before subscribing to the issue

Go Digit IPO details

The Go Digit General Insurance IPO consists of an offer-for-sale (OFS) of 54,766,392 equity shares by the promoters and other selling shareholders, together with a fresh issue of 1,125 crore.

Go Digit Infoworks Services Private Ltd, the promoter selling shareholder, plans to offload up to 54,755,614 equity shares. Other selling shareholders, Nikita Mihir Vakharia and Mihir Atul Vakharia together, plan to sell up to 4,000 equity shares, and Nikunj Hirendra Shah and Sohag Hirendra Shah together, up to 3,778 equity shares. Additionally, Subramaniam Vasudevan and Shanti Subramaniam intend to sell a maximum of 3,000 equity shares.

The net proceeds will be used by the firm to fund the initiatives that are recommended to be supported by the net profits in addition to the company's ongoing business activities. The company also expects benefits from listing the equity shares on stock markets, as it thinks this will enhance its reputation and brand awareness among both present and potential customers.

The book running lead managers for the Go Digit IPO are ICICI Securities Limited, Axis Capital Limited, Edelweiss Financial Services Ltd, Hdfc Bank Limited, and Iifl Securities Ltd. Link Intime India Private Ltd. is the issue registrar.

Also Read: Go Digit IPO: Issue subscribed 36% on day 1, retail portion fully booked; check GMP

Go Digit General Insurance IPO GMP today

Go Digit IPO GMP today is +14. This indicates Go Digit share price were trading at a premium of 14 in the grey market, according to investorgain.com.

Once the top end of the IPO pricing range and the existing premium on the grey market are taken into consideration, shares of Go Digit are anticipated to list at a price of 286 per share, which is 5.15% more than the IPO price of 272.

After nine sessions of grey market activity, the IPO GMP is pointing downward and is expected to continue to decline. Analysts at investorgain.com estimate that the lowest GMP is 14 and the maximum GMP is 70.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Also Read: Go Digit IPO Day 2: From financials to key risks, here are 10 things to know from RHP before subscribing

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 17 May 2024, 11:29 AM IST
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