The ₹2,615-crore IPO of Go Digit General Insurance Limited, a digital full-stack company, ₹opens today for the public at a price band of ₹258-272. The market lot is 55 shares.
The issue is a mix of a fresh issue of 4.14 crore shares worth ₹1,125 crore and an offer for sale of 5.48 crore shares for ₹1,489.65 crore. The IPO will close on May 17.
At least 75 per cent of the issue is reserved for qualified institutional buyers, while up to 15 per cent for non-institutional bidders, and a maximum of 10 per cent for retail investors.
Go Digit Infoworks Services Private Ltd, the promoter selling shareholder, will offload up to 5.475 crore shares, while other selling shareholders such as Nikita Mihir Vakharia and Mihir Atul Vakharia together plan to sell up to 4,000 equity shares, and Nikunj Hirendra Shah and Sohag Hirendra Shah together, up to 3,778 shares. Besides, Subramaniam Vasudevan and Shanti Subramaniam intend to sell up to 3,000 shares.
The fresh capital will be used for the expansion of the company’s capital base and maintenance of solvency levels and general corporate purposes.
Anchor investors
As part of IPO, Go Digit General Insurance has garnered ₹1,176.59 crore from anchor investors by allocating a little over 4.32 crore shares at ₹272 a share.
Foreign and Domestic Institutions who participated in the anchor were Fidelity Investment Trust, Bay Pond Partners L.P., Goldman Sachs, Abu Dhabi Investment Authority (ADIA), Schroder International, East Spring Investments India, Custody Bank of Japan, SBI Mutual Fund, ICICI Prudential Mutual Fund, Axis Mutual Fund, Mirae Asset Mutual Fund, Ashoka WhiteOak Mutual Fund, Malabar Mutual Fund, Steadview Capital Mauritius Ltd, Optimix Wholesale Global Emerging Markets Share Trust, ACM Global Fund, HDFC Life Insurance, ITPL Invesco India Mutual Fund, Tata Mutual Fund, Volrado Venture Partners Fund, NHIT Global Emerging Markets Equity Trust, Florida Retirement System, Singularity Equity Fund, Motilal Oswal Mutual Fund, Edelweiss Trusteeship Co Ltd AC, Max Life Insurance, Tata AIA Life Insurance Company, Bajaj Allianz Life Insurance Company, Bandhan Mutual Fund, PGIM India Trustees Private Ltd, Morgan Stanley Asia (Singapore) PTE ODI, and Ghisallo Master Fund LP.
Ace cricketer Virat Kohli bought 2.67 lakh shares worth ₹2 crore in 2020, while his wife, actress Anushka Sharma, invested ₹50 lakh in a private placement. Virat Kohli has also some preemptive rights as well as a tag-along right, as mentioned in the RHP. In addition, if Virat Kohli decides to sell some or all of his interests in the company to a third party other than Kamesh Goyal or Go Digit Infoworks Services Private Limited, Go Digit Infoworks Services Private Ltd has the right of first offer.
Founded by Kamesh Goyal, the company offers motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and other insurance products.
ICICI Securities Limited, Morgan Stanley India Company Private Limited, Axis Capital Limited, HDFC Bank Limited, IIFL Securities Limited, Nuvama Wealth Management Limited, and Link Intime India Private Limited serve as the registrars to the Offer. The Equity Shares are intended for listing on both BSE and NSE.