Go Digit IPO: Virat Kohli, Anushka Sharma-backed Go Digit gets SEBI green signal to launch IPO. Check Details
Go Digit IPO: SEBI approved Virat Kohli and Anushka Sharma-backed Go Digit’s delayed IPO, with fresh issuance of ₹1,250 crore and OFS of 10.94 crore shares by promoters and existing shareholders for capital base enhancement and general purposes
Go Digit IPO: Market regulator Securities and Exchange Board of India (SEBI) has approved Go Digit's initial public offering (IPO), which is backed by cricketer Virat Kohli and his wife, Bollywood actress Anushka Sharma. Go Digit's IPO hit many hurdles over compliance issues resulting in a delayed approval for the public offer, on March 4.
Go Digit General Insurance Ltd is also backed by Canada-based Fairfax Group.
The approval came after the company's preliminary IPO papers were first filed in August 2022.
Go Digit's proposed IPO comprises fresh issuance of shares worth ₹1,250 crore and an Offer For Sale (OFS) of 10.94 crore shares by promoter Go Digit Infoworks Services and existing shareholders, according to the Draft Red Herring Prospectus (DRHP).
Proceeds from the fresh issuance would be utilised for the augmentation of the company's capital base, maintenance of solvency levels and general corporate purposes.
Cricketer Virat Kohli and his wife, actor Anushka Sharma, are among the firm's investors.
According to an update with SEBI on Monday, the regulator gave its observation on March 1.
In SEBI's parlance, obtaining an observation letter means the regulator's go-ahead to launch the public issue.
The company had first filed the DRHP with SEBI in August 2022 to raise funds through an initial share sale. However, it was thwarted primarily due to certain compliance requirements pertaining to the employee stock appreciation rights scheme.
SEBI returned Go Digit's draft IPO papers on January 30, 2023, and asked the company to refile the documents with certain updates. Following this, the company again filed the preliminary IPO papers with SEBI in April 2023.
In November last year, Digit General Insurance, which runs Go Digit, filed an addendum to its IPO documents, stating that the Insurance Regulatory and Development Authority of India (IRDAI) had issued it a show-cause notice related to its “non-disclosure of change in the conversion ratio of the compulsorily convertible preference shares, issued to Fairfax.”
The company is likely to go public in the first half of 2024, as reported by Mint in February 2024.
Second attempt at IPO
This is Go Digit’s second attempt at an IPO. In January 2023, SEBI had returned its offer document, making observations on the lock-in period for promoters and shareholders, and its employee stock options. Go Digit rectified these issues and refiled the offer document on April 6.
Go Digit offers motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and other insurance products to meet the needs of customers.
It is one of India's first non-life insurers to be fully operated on the cloud and has developed Application Programming Interface (API) integrations with several channel partners.
Other expected IPOs
Apart from Go Digit, Denta Water and Infra Solutions Ltd and KRN Heat Exchanger and Refrigeration Ltd have received SEBI's nod to launch their maiden public issues. These two firms filed draft IPO papers with SEBI between December 2023 and January 2024.
Denta Water and Infra Solutions' IPO is entirely a fresh issue of up to 75 lakh equity shares with no OFS component. Proceeds from the fresh issue to the tune of ₹150 crore will be used to meet working capital requirements.
The initial share sale of KRN Heat Exchanger and Refrigeration Ltd is purely a fresh issue of 1.93 crore equity shares with no OFS component. Funds will be used for investment in wholly-owned subsidiary KRN HVAC Products to set up a new manufacturing facility at Neemrana, Alwar, in Rajasthan.
Shares of these three companies will be listed on BSE and NSE.
(With Inputs from Agencies)
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