Go Digit IPO opens today: GMP, subscription status, review, other details. Apply or not?
- Go Digit IPO opens for subscription with a price band of ₹258 to ₹272 per equity share. Go Digit General Insurance IPO includes an offer-for-sale of 54,766,392 equity shares and a fresh issue of ₹1,125 crore. The company aims to use the proceeds for operations and projects.
Go Digit General Insurance IPO will open today (Wednesday, May 15) for subscription and close on Friday, May 17. Go Digit IPO earned ₹1,176.59 crore from anchor investors on Tuesday, May 14. The company issued 4,32,57,009 equity shares to anchor investors at a price of ₹272 per share, as per the exchange filing.
Participating in the anchor were a number of domestic and international institutions, including Fidelity Investment Trust, Goldman Sachs, ACM Global Fund, ITPL Invesco India Mutual Fund, Custody Bank of Japan, Schroder International, East Spring Investments India, SBI Mutual Fund, ICICI Prudential Mutual Fund, Axis Mutual Fund, Mirae Asset Mutual Fund, Ashoka WhiteOak Mutual Fund, Malabar Mutual Fund, Steadview Capital Mauritius Ltd.
The price band for the issue has been set at ₹258 to ₹272 for each equity share with a face value of ₹10. The lot size for the IPO is 55 equity shares, and thereafter, there will be multiples of 55 equity shares.
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.
Go Digit General Insurance Limited is an insurer offering a range of insurance products that customers may customise to suit their needs, including health, liability, property, marine, travel, and auto insurance.
Promoters of the firm include Kamesh Goyal, GoDigit Infoworks Services Private Limited, Oben Ventures LLP, and FAL Corporation.
Cricket star Virat Kohli purchased ₹2 crore for the company's 2.67 lakh shares in 2020, while his wife, actress Anushka Sharma, invested ₹50 lakh to a private placement.
Go Digit IPO subscription status
The initial public offer of non-life general insurance company has been subscribed 36% on the first day of bidding, as per BSE data.
The category for non-institutional investors has received 34% subscriptions. The retail individual investors (RIIs) part has got subscribed 1.44 times. The Qualified Institutional Buyers (QIBs) is yet to be booked.
The IPO got bids for 1,89,12,575 shares against 5,28,69,677 shares on offer, as per BSE data.
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.
The promoter selling shareholder, Go Digit Infoworks Services Private Ltd, intends to sell up to 54,755,614 equity shares. Additional selling shareholders Nikunj Hirendra Shah and Sohag Hirendra Shah intend to sell up to 3,778 equity shares, while Nikita Mihir Vakharia and Mihir Atul Vakharia jointly seek to sell up to 4,000 equity shares. In addition, Shanti Subramaniam and Subramaniam Vasudevan want to sell up to 3,000 equity shares.
The company will use the net proceeds to support both the company's regular commercial operations and the projects that are suggested to be funded by the net profits. The firm anticipates benefits from the equity share listing on stock exchanges as well, believing that this would improve its brand awareness and reputation among current and future consumers.
Go Digit General Insurance IPO buy or not?
Master Capital Services Ltd
In Financial Year 2023, the non-life insurance market generated about US$ 33.30 billion in Gross Written Premiums (GWP), demonstrating a compound annual growth rate (CAGR) of 11.2% from Financial Year 2018 to Financial Year 2023, according to the IRDAI and Redseer research. In order to capitalise on the expansion of this industry, Go Digit General Insurance Limited is concentrated on increasing the number of new customers it acquires and strengthening its current customer base.
Thus far, the company has shown that it can take advantage of market share growth in its main market. Along with growing its product line to better satisfy market demands and encourage broader acceptance of its whole product suite, the firm also plans to enter additional Indian geographies.
"We recommend subscribing to this IPO, with a medium to long term perspective, given the huge growth and margin expansion potential," the brokerage said.
Swastika Investmart Ltd
Go Digit's financial performance has improved recently, according to the brokerage, despite the fact that they are still experiencing operational losses. The insurance sector is subject to a number of intrinsic risks, including as strict regulatory oversight and the possibility of catastrophic occurrences raising claim liabilities dramatically. Furthermore, Go Digit is heavily reliant on its auto insurance offering.
Go Digit has the potential to be profitable in the future because to its excellent technology skills and expanding market position, even with its aggressive valuation in comparison to current profits and operational losses. The brokerage recommends a subscribe rating for this IPO based on these considerations.
Go Digit General Insurance IPO GMP today
Go Digit IPO GMP today is +47. This indicates Go Digit share price were trading at a premium of ₹47 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 ₹319 per share, which is 17.28% more than the IPO price of ₹272.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
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