The Go Digit General Insurance IPO, backed by Virat Kohli, has announced a price band of ₹258-272 per share. Subscription for the IPO will be open from May 15 to May 17, with anchor investor allocation set for May 14. Each lot comprises 55 shares, and the listing is anticipated on May 23.
Go Digit General Insurance IPO: Price Band and Allocation
The Go Digit General Insurance IPO price band ranges from ₹258 to ₹272 per equity share of face value ₹10. Subscriptions are scheduled from May 15 to May 17, with anchor investor allocation on May 14. The floor price is 25.80 times the face value, and the cap price is 27.20 times. The price/earnings ratio based on diluted EPS for 2023 at the upper end of the band is notably high at 680, compared to the industry average of 46.13x.
The Go Digit General Insurance IPO has reserved 75% of shares for qualified institutional buyers (QIB), 15% for non-institutional investors (NIIs), and 10% for retail investors. Share allocation basis is expected to be finalized by May 21, with refunds starting on May 22. Shares are likely to be listed on BSE and NSE on May 23.
Promoters of the company include FAL Corporation, Oben Ventures LLP, GoDigit Infoworks Services Private Limited, and Kamesh Goyal. Go Digit General Insurance Limited offers customizable insurance policies including health, liability, property, marine, travel, and auto. The company currently has 74 active goods in its portfolio.
In 2020, Virat Kohli purchased 2.67 lakh shares of the company for ₹2 crore, while his wife, actress Anushka Sharma, invested 50 lakh through a private placement. The company’s listed peers include New India Assurance Company Ltd, Star Health and Allied Insurance Company Ltd, and ICICI Lombard General Insurance Company Ltd.
The book running lead managers for the Go Digit IPO include ICICI Securities Limited, Morgan Stanley India Company Pvt Ltd, Axis Capital Limited, Edelweiss Financial Services Ltd, Hdfc Bank Limited, and Iifl Securities Ltd. The issue’s registrar is Link Intime India Private Ltd.
The Go Digit General Insurance IPO comprises a fresh issue of ₹1,125 crore and an offer-for-sale (OFS) of 54,766,392 equity shares by the promoters and other selling shareholders. The company intends to utilize the net proceeds for its current business operations and suggested projects. Additionally, listing on stock exchanges is expected to enhance brand awareness and image.
Grey Market Premium (GMP) and Expected Listing Price
The grey market premium (GMP) for the Go Digit IPO is +50, indicating shares trading at a premium of ₹50. Shares are expected to list at ₹322 per share, 18.38% higher than the IPO price of ₹272, reflecting investor willingness to pay more than the issue price.
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