Go Digit General Insurance Ltd, a company supported by Canada’s Fairfax Group, is getting ready to sell shares to the public for the first time on May 15. The sale will run until May 17, with a unique opportunity for anchor investors to bid on May 14. This information comes from the Red Herring Prospectus.
Go Digit’s upcoming IPO involves selling new shares worth Rs 1,125 crore and an Offer For Sale (OFS) of 54.7 million existing equity shares by promoter Go Digit Infoworks Services and other shareholders. Go Digit Infoworks Services holds an 83.3% stake in the company.
About Go Digit IPO
Currently, Go Digit Infoworks Services owns 83.3% of the company. The money from selling new shares will strengthen the company’s finances and general business needs.
Famous cricketer Virat Kohli and actor Anushka Sharma have invested in the company, but they’re not selling any shares in the IPO. In March, Go Digit got approval from the Securities and Exchange Board of India (Sebi) to launch the IPO. The company first tried to raise funds through an IPO in August 2022, but it faced issues related to employee stock appreciation rights scheme compliance.
Go Digit’s journey to its IPO has been eventful. After Sebi returned the draft IPO papers on January 30, 2023, the company was asked to update and resubmit the documents. Following this, in April 2023, Go Digit filed the preliminary IPO papers once again. Offering various insurance products such as motor, health, travel, property, marine, and liability insurance, Go Digit aims to cater to diverse customer needs.
Notably, it’s among the first insurers in India to operate fully on the cloud and has established API integrations with numerous partners. The IPO management is in capable hands, with ICICI Securities, Morgan Stanley India Company, Axis Capital, HDFC Bank, Nuvama Wealth Management, and IIFL Securities serving as the book running lead managers.
Go Digit’s IPO Approval
Go Digit General Insurance, supported by Canada’s Fairfax Group and backed by investors like cricketer Virat Kohli and actress Anushka Sharma, has received the green light from SEBI to raise funds through an IPO.
Due to compliance issues, the company faced initial hurdles when SEBI returned its draft papers in August 2022. However, after making necessary updates and resubmitting the documents, Go Digit got approval on March 1, 2024. The IPO plan includes issuing new shares worth ₹1,250 crore and selling 10.94 crore shares through an offer for sale (OFS) involving promoters and existing shareholders, including individuals like Nikita Mihir Vakharia, Mihir Atul Vakharia, Nikunj Hirendra Shah, Sohag Hirendra Shah, Subramaniam Vasudevan, and Shanti Subramaniam.
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