Canadian billionaire Prem Watsa-owned Fairfax-backed Go Digit General Insurance has filed its Draft Red Herring Prospectus (DRHP) with the SEBI for an initial public offering (IPO) involving a fresh issue of shares by the general issuer and l an offer for sale by its promoter and certain selling shareholders.

The draft papers filed with the market regulator SEBI by the new age general insurer revealed issuing of a fresh issue of equity shares worth up to ₹1,250 crore combined with an offer-for-sale (OFS) up to 10.94 crore equity shares by the promoter and selling shareholders. The overall mop up eyed through this offering could be about ₹5,000 crore, according to market sources.

The proceeds will be utilised to augment the company’s capital base, maintenance of solvency levels and for general corporate purposes. The company may also go in for ₹250 crore pre-IPO placement, and if this were to happen, the issue size would get reduced to ₹1,000 crore.

Of the OFS component of 10.94 crore shares, up to 109,434,783 equity shares is proposed to be sold by the Go Digit Infoworks Services Private Limited, up to 4,000 by Nikita Mihir Vakharia, jointly with Mihir Atul Vakharia, up to 3,778 equity shares by Nikunj Hirendra Shah, jointly with Sohag Hirendra Shah, up to 3,000 equity shares by Subramaniam Vasudevan, jointly with Shanti Subramaniam (selling shareholders).

ICICI Securities Limited, Morgan Stanley India Company Private Limited, Axis Capital Limited, Edelweiss Financial Services Limited, HDFC Bank Limited, and IIFL Securities Limited are the book-running lead managers.

Go Digit offers motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and other insurance products, to meet the needs of the customers. 

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