FAIRFAX-BACKED GO DIGIT AIMS TO RAISE ₹2,615 CRORE VIA IPO

NEW DELHI: Go Digit General Insurance Ltd, a firm backed by Canada-based Fairfax Group, on Friday fixed a price band of ₹258-272 per share for its ₹2,615crore initial public offering (IPO).

The initial share-sale will open for public subscription during May 15-17 and the bidding for anchor investors will open for a day on May 14, the company announced.

Go Digit’s proposed IPO comprises fresh issuance of equity shares worth ₹1,125 crore and an Offer-for-Sale (OFS) of 5.47 crore equity shares by promoter Go Digit Infoworks Services and existing shareholders worth ₹1,490 crore. This takes the total IPO size to ₹2,615 crore at the upper end of the price band.

At present, Go Digit Infoworks Services owns 83.3% stake in the company.

Proceeds from the fresh issuance have been proposed to be utilised for the augmentation of the company’s capital base and maintenance of solvency levels and general corporate purposes.

Cricketer Virat Kohli and his wife and actor Anushka Sharma are among the investors in the firm. They are not selling any share in the IPO.

About 75% of the issue size has been reserved for qualified institutional investors, 15% for non-institutional investors and the remaining 10% for retail investors. Investors can bid for a minimum of 55 equity shares and in multiples of 55 equity shares thereafter. 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.

It is one of the first non-life insurers in India to be fully-operated on the cloud and has developed application programming interface (API) integrations with several channel partners.

In March, Go Digit secured the approval from the Securities and Exchange Board of India (Sebi) to float the IPO.