Fairfax-backed Go Digit to float IPO on May 15
Go Digit General Insurance Ltd, a firm backed by Canada-based Fairfax Group, is set to launch its initial public offering on May 15.
Representative image (file image)
NEW DELHI: Go Digit General Insurance Ltd, a firm backed by Canada-based Fairfax Group, is set to launch its initial public offering on May 15.
The initial share sale will conclude on May 17 and the bidding for anchor investors will open for a day on May 14, according to the Red Herring Prospectus (RHP).
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Go Digit's proposed IPO comprises fresh issuance of equity shares worth Rs 1,125 crore and an Offer For Sale (OFS) of 54.7 million equity shares by a promoter Go Digit Infoworks Services and existing shareholders.
At present, Go Digit Infoworks Services owns an 83.3 percent stake in the company.
Proceeds from the fresh issuance have been proposed to be utilised for the augmentation of the company's capital base and maintenance of solvency levels and general corporate purposes.
Cricketer Virat Kohli and his wife and actor Anushka Sharma are among the investors in the firm. They are not selling any shares in the IPO.
In March, Go Digit secured approval from the Securities and Exchange Board of India (Sebi) to float the IPO.
The company had first filed the Draft Red Herring Prospectus (DRHP) with the 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.
Go Digit offers motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and other insurance products, to meet the needs of the customers.
It is one of the first non-life insurers in India to be fully operated on the cloud and has developed Application Programming Interface (API) integrations with several channel partners.
ICICI Securities, Morgan Stanley India Company, Axis Capital, HDFC Bank, Nuvama Wealth Management and IIFL Securities are book running lead managers to Go Digit's IPO.