Digit Insurance IPO's retail portion fully subscribed; key highlights of the offering

Go Digit General Insurance Ltd, which launched its Rs 2,615 crore initial public offering (IPO) Wednesday, saw the retail portion of the issue getting fully subscribed by 1.45 pm. The IPO, priced between Rs 258 to Rs 272 per share, will close on Friday. The company had reserved 9.6 million shares for retail investors.

Here are the key highlights of the issue:

1. The IPO comprises a fresh equity issue of Rs 1,125 crore and an offer for sale (OFS) of up to 54.7 million shares, with promoter Go Digit Infoworks making up the largest portion of the secondary component.


2. Go Digit plans to utilise the net proceeds to support ongoing business operations and finance future growth activities, particularly focusing on digital and omnichannel expansion.

3. The IPO size is smaller than the initially planned Rs 1,250 crore, with a fresh issuance of 109.4 million equity shares. The requirement for capital went down as it had raised non-convertible debentures worth Rs 200 crore in December last year.

4. Prior to the IPO, Go Digit raised Rs 1,176.5 crore from anchor investors by allocating 43.25 million shares at Rs 272 each. Institutions like Fidelity Investment Trust, Goldman Sachs, and Abu Dhabi Investment Authority (ADIA) participated in the anchor.

5. Based in Bengaluru, Digit is a full-stack digital insurance company offering a range of products including motor, health, travel, property, and marine insurance, totalling 74 active products in the general insurance category.

6. Investors looking to participate in the IPO can bid for a minimum of 55 shares in the IPO and in multiples of 55 shares thereafter.

7. Kamesh Goyal, who founded Go Digit in 2016, is an insurance veteran who began his career at New India Assurance. He then gained extensive experience in the insurance sector during a long tenure at German insurer Allianz.

8. Go Digit reported Rs 129 crore net profit for April-December FY24, compared to Rs 10 crore a year earlier. Its gross written premium also rose 26% to Rs 6,679 crore from Rs 5,288 crore.

9. Despite achieving a valuation of $4 billion during its last private fundraise in 2022, Go Digit is going public at a valuation of $3 billion-$3.2 billion, following feedback from investors.

10. Go Digit faced legal issues, including a wrongful input tax credit claim and a Rs 1 crore penalty from IRDAI for not disclosing changes in the conversion ratio of compulsory convertible preference shares to Fairfax-owned FAL Corporation.