Go Digit General Insurance Announces IPO Dates and Reduced Offering Size

Go Digit General Insurance, a leading digital general insurance provider, has unveiled its plan to enter the public market through an initial public offering (IPO). The offering will open for subscription on May 15th and conclude on May 17th.

Reduced Offering Size

It’s important to note that Go Digit has scaled back the size of its IPO compared to initial plans. The company’s Red Herring Prospectus (RHP) details a fresh issuance of shares valued at Rs 1,125 crore, along with an offer for sale (OFS) of 54,766,392 shares. Previously, the IPO comprised a fresh issue worth Rs 1,250 crore and an OFS component of a larger 10.94 crore equity shares.

Promoter and Shareholder Participation

The RHP clarifies that existing promoters and shareholders of Go Digit will be offloading a portion of their holdings during the OFS. However, it’s noteworthy that celebrity couple Virat Kohli and Anushka Sharma, who invested in the company in 2020, will not be participating in the share sale.

IPO Management and Recent Regulatory Hurdles

ICICI Securities, Morgan Stanley India, Axis Capital, Edelweiss Financial Services, HDFC Bank, and IIFL Securities will be serving as the book-running lead managers for the IPO. This announcement comes on the heels of a recent Rs 1 crore penalty imposed by the Insurance Regulatory and Development Authority of India (IRDAI) on Go Digit due to delays in filing particulars of a joint venture agreement. The company also faced a show-cause notice and advisories from IRDAI regarding the same matter in November.

Regulatory Approvals and Busy IPO Landscape

Go Digit received approval from the Securities and Exchange Board of India (SEBI) to raise funds through an IPO in March 2024. The company had to resubmit its draft IPO documents in April 2023, following an initial filing in July 2022.

Go Digit’s IPO joins a growing list of companies seeking public listings. Travel tech company TBO is also preparing for its stock market debut, while Awfis received SEBI approval last month. Several other companies, including FirstCry, Ola Electric, Unicommerce, and MobiKwik, are still awaiting regulatory greenlight for their respective IPOs.