Go Digit IPO update:
The IPO of Go Digit is set to begin accepting subscriptions on May 15 and will close on May 17. As outlined in the Red Herring Prospectus (RHP), anchor investors will have the opportunity to place their bids on May 14. The green light for Go Digit’s IPO was granted in March 2024 following delays caused by various compliance issues. Notably, shareholders Virat Kohli, the Indian cricketer, and actress Anushka Sharma will not be divesting their shares in this public offering.
Moreover, Go Digit, backed by Prem Watsa, plans to raise Rs 1,500 crore through its IPO. This includes issuing fresh shares valued at Rs 1,125 crore and an offer-for-sale (OFS) of up to 5,47,66,392 equity shares by its promoters and existing shareholders.
On May 4, the Insurance Regulatory and Development Authority of India (IRDAI) imposed a penalty of Rs 1 crore on the company due to its failure to disclose a change in the conversion ratio of compulsorily convertible preference shares (CCPS) issued by its parent company to Fairfax-owned FAL Corporation. The initial conversion ratio agreed upon during the joint venture (JV) in 2017 was “1 CCPS for 2.324 equity shares,” but the company later altered it to “2.324 CCPS for 1 equity share”. Established in 2016, Digit General Insurance Company, headquartered in Pune, provides insurance coverage for automobiles, travel, mobile devices, and jewelry.
Go Digit Insurance is dedicated to simplifying insurance. Their mission is to provide a seamless customer experience in a significant financial product that individuals invest in throughout their lives, through innovation and transparency. Positioned as a leading digital full-stack insurance company, they harness technology to revolutionize product design, distribution, and customer interactions in the non-life insurance sector.
As a full-stack insurer, they are fully licensed and regulated, handling sourcing, underwriting, and servicing in-house. Being a digital full-stack insurer, they prioritize integrating technology into their operations. Their product range includes motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and more, all customizable to suit individual needs.
Utilizing a blend of insurance and technology solutions, they facilitate enrollment, claims processing, underwriting, policy administration, data analysis, and fraud detection. Their success is evidenced by the RedSeer Report, exclusively commissioned and funded by them for the Offer, which identifies them as the fastest-growing insurer among private non-life insurers by Gross Written Premium (GWP) in Fiscal 2022.
Their ultimate goal is to simplify insurance to the extent that even a 15-year-old can comprehend it. Established on December 7, 2016, they embarked on a journey to redefine the understanding and experience of non-life insurance products for consumers and distributors in India. They believe that by simplifying insurance, they can foster trust and cultivate meaningful relationships with their customers and distribution partners.
