Go Digit General Insurance, a prominent player in India’s insurance sector, has secured Rs 1,176 crore ($141 million) from anchor investors as part of its initial public offering (IPO). The move marks a significant milestone in the company’s journey towards going public.
The company’s regulatory filing, accessed from the Bombay Stock Exchange, reveals that Go Digit General Insurance has offered its anchor investors 4,32,57,009 equity shares at an issue price of Rs 272 each. Among the key investors are SBI, ICICI Prudential, Axis Mutual Fund, Mirae Asset, Tata Flexi, Motilal Oswal, PGIM India, and Edelweiss. Notably, 11 domestic mutual funds through 23 schemes have been allocated 1,44,96,570 equity shares out of the total allocation.
The public offering, initiated from May 15th to 17th, 2024, offers shares in the price band of Rs 258-272 with a minimum bid quantity of 55 shares.
In its Draft Red Herring Prospectus (DRHP), Go Digit General Insurance proposed to raise funds through the issue of equity shares amounting to Rs 1,125 crore and an offer for sale of up to 5,47,66,392 equity shares. The firm had refiled its draft IPO papers earlier and reduced the IPO size. However, it faced regulatory scrutiny last year when it was fined by the Insurance Regulatory and Development Authority of India (IRDAI) for a delay in filing the particulars of a joint venture agreement.
Go Digit Infoworks Services holds the largest stake in the firm, 80.57%, followed by TVS Shriram Growth, 3.43%. Other major stakeholders include A91 Engineering, Faering Capital, and Peak XV, which hold 3.23%, 2.06%, and 1.00%, respectively.
During the nine months of FY24 (March 23- Dec 23), Go Digit recorded a net revenue of Rs 5,631 crore with a profit of Rs 129 crore. In FY23, the company posted a revenue of Rs 5,909 crore and a profit of Rs 35.5 crore.
Go Digit General Insurance’s successful fundraising mirrors the recent trend in the market, as demonstrated by travel tech firm TBO Tek, which raised Rs 689 crore ($83 million) from its anchor investors. This reflects investors’ confidence in the company’s growth prospects and potential to deliver strong returns.
As the IPO progresses, all eyes will be on Go Digit General Insurance. Investors eagerly anticipate its debut on the stock exchange and its performance in the public market.
