Insurer Go Digit’s Rs 2.6k cr IPO set to open on May 15

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MUMBAI: Go Digit Insurance, a unicorn startup backed by Canadian billionaire Prem Watsa, goes public with a Rs 2,614-crore IPO that opens on May 15.
The firm’s market worth, on the higher finish of the Rs 258-272 per share value band, will stand at Rs 26,438 crore or about $3.2 billion – a 17% low cost to its final non-public valuation. It final raised capital in May 2022, when it issued 1.3 crore shares by non-public placement at Rs 328 per share.
Why the low cost? Go Digit General Insurance chairman Kamesh Goyal stated it was based mostly on funding bankers‘ recommendation and that the corporate needed to go away cash on the desk for traders.
The IPO, which can shut on May 17, features a recent difficulty of shares value Rs 1,125 crore, and an offer-for-sale of almost 5.5 crore shares valued at Rs 1,489 crore on the higher finish of the value band.

The firm, which began operations in 2017 and turned a unicorn ($1-billion-plus valuation) in 2021, is collectively promoted by Prem Watsa’s Fairfax group and trade veteran Kamesh Goyal.
The IPO goals to elevate funds to enhance the corporate’s solvency margin. Solvency margins are the equal of capital adequacy in banking, and insurers have to scale up their capital together with the expansion in enterprise.
Go Digit’s promoters and shareholders will promote their stakes within the provide on the market. However, movie star shareholders Virat Kohli and Anushka Sharma is not going to take part within the OFS. Goyal stated the corporate has lowered the problem measurement because it has raised Rs 350 crore by means of tier-2 capital. He stated there was potential for development on condition that insurance coverage penetration in India was solely round 1% and Go Digit presently had a 3% market share.
As of Dec 31, 2023, there have been 43.3 million prospects or individuals availing insurance coverage advantages underneath numerous insurance policies issued by the corporate since inception. For the primary 9 months of FY24, Go Digit’s belongings underneath administration stood at 14,909 crore and gross direct premium stood at Rs 5,970 crore. According to a RedSeer Report, Go Digit’s gross written premium per worker for each the 9 months ended Dec 31, 2023 and FY23 is highest in contrast to the typical GWP per worker for non-life insurance coverage corporations in India.


Nilesh Desai
Nilesh Desaihttps://www.TheNileshDesai.com
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.

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