Go Digit IPO Update
Power couple Anushka Sharma and Virat Kohli-backed Go Digit is set to launch its initial public offering (IPO) on Wednesday, May 15, 2024, remaining open until Friday, May 17, 2024. The Bengaluru-based insurance startup aims to raise Rs 2,614.65 crore through a book-built issue. This includes a fresh issue of 41.4 million shares valued at Rs 1,125.00 crore and an offer for sale (OFS) of 54.8 million shares totaling Rs 1,489.65 crore.
Go Digit, a full-stack digital insurance company from Bengaluru, offers a range of insurance products including motor, health, travel, property, marine, and liability insurance. The company, which has launched 74 active products, provides customized insurance policies.
In its follow-on public offering, Go Digit raised approximately Rs 1,176 crore from 56 anchor investors, such as Fidelity, Abu Dhabi Investment Authority (ADIA), and Bay Pond Partners, by allotting 43.2 million shares at Rs 272 each. The IPO price band is set between Rs 258 and Rs 272 per equity share.
The net proceeds from the Go Digit IPO will be used to support current business operations and other projects, as well as to enhance brand awareness among current and potential consumers. Investors can bid for a minimum lot size of 55 shares and in multiples thereof. Qualified Institutional Buyers (QIBs) can bid for up to 75% of the issue, non-institutional investors (NIIs) for up to 15%, and retail investors for 10%.
According to Go Digit’s red herring prospectus, the company posted a net profit of Rs 1,290 crore for the first nine months of FY24, up from Rs 100.21 crore for the same period in FY23. By the end of FY23, the company had a profit of Rs 355.47 crore. Total income for the first nine months of FY24 was Rs 1,308.32 crore, compared to Rs 124.19 crore for the same period in FY23. However, Go Digit reported an operating loss of Rs 101.2 crore for the nine months ending December 2024, reduced from Rs 570 crore for the same period in FY23 and Rs 622.7 crore in FY23.
Risks associated with the Go Digit IPO include potential future profitability issues, the adequacy of loss reserves, ongoing legal proceedings involving the company and its directors, and the impact of interest rate changes or adverse equity market movements on the investment portfolio.
