Go Digit’s Insurtech IPO Opening and Closing Dates

Exciting news ahead! Go Digit General Insurance is gearing up to kick off its initial public offering (IPO) subscription journey on May 15, wrapping up on May 17. As detailed in the Red Herring Prospectus (RHP), eager anchor investors have their chance to bid on May 14. Despite some hiccups with compliance, this insurance startup finally got the green light for its IPO in March 2024.

Related: Insurtech Unicorn Digit Insurance Is Ready To Go Public

Now, what’s in this IPO package? Well, it includes fresh shares worth Rs 1,125 crore and an offer-for-sale (OFS) of up to 54,766,392 equity shares by promoters and existing shareholders. With the backing of Prem Watsa, Go Digit has big plans for these funds: bolstering solvency ratio and beefing up capital reserves. Exciting times ahead for Go Digit!

Indian cricket star Virat Kohli and Bollywood actress Anushka Sharma, both proud shareholders, have decided to keep their stakes intact in this exciting opportunity. Back in February 2020, Kohli secured 2,66,667 equity shares, while Sharma acquired 66,667 shares in Go Digit. According to the DRHP, they’re sticking with their investments. Now, here’s the scoop on the offering: 75% of shares are set aside for savvy institutional bidders, 15% for individuals looking to make a splash, and the remaining 10% for everyday investors like you and me.

On May 4th, the Insurance Regulatory and Development Authority of India (IRDAI) slapped Go Digit with a hefty Rs 1 crore penalty. This was due to Go Digit forgetting to inform about a change in the conversion ratio of some fancy shares they issued to Fairfax-owned FAL Corporation. Originally, they said it was “1 fancy share for 2.324 regular shares,” but later, they switched it to “2.324 fancy shares for 1 regular share.”

When IRDAI sent them a warning back in November, Go Digit admitted they didn’t let them know about the change when it happened in August 2022. They said it was just a silly mistake and they didn’t mean to. They even asked for a face-to-face chat about it, but then changed their minds and told IRDAI to decide based on what they’d already said.

ICICI Securities, Morgan Stanley India Company, Axis Capital, Edelweiss Financial Services, HDFC Bank and IIFL Securities have been appointed as the book-running lead managers for Go Digit’s IPO. Additionally, Link Intime India will serve as the registrar. The company plans to list its shares on both the BSE and NSE.

Go Digit General Insurance is set to launch its IPO subscription journey, with plans to wrap up on May 17. The IPO package consists of fresh shares worth Rs 1,125 crore and an offer-for-sale of up to 54,766,392 equity shares. Celebrity shareholders Virat Kohli and Anushka Sharma are retaining their stakes. Despite a recent penalty imposed by IRDAI, the company is forging ahead, supported by lead managers like ICICI Securities and Morgan Stanley India Company. Established in 2016, Go Digit aims to leverage the IPO to solidify its position in the Indian insurance sector as a frontrunner with a diverse portfolio of insurance services.