Go Digit IPO sets Rs 258-272 per share price band; bids open on May 15

Go Digit General Insurance IPO to open bids from May 16-17 with a lot size of 55 shares. Here is everything you need to know about the company's IPO details, key dates, prices and allotment

Go Digit General Insurance has announced details for its initial public offering (IPO) that will have a price band of Rs 258 to Rs 272 per equity share of the face value of Rs 10.

Subscription for the Pune-based company’s IPO is scheduled from May 15 to May 17. The allocation to anchor investors is set to take place on May 14.

Here is everything you need to know about Go Digit General Insurance and its upcoming IPO offering.

Go Digit IPO details

• Price band: Rs 258 to Rs 272 per equity share  
• Subscription dates: Wednesday, May 15 to Friday, May 17  
• Allocation to anchor investors: Tuesday, May 14  

Go Digit: Lot size

The minimum lot size that investors can bid for are 55 shares and in multiples thereof.

Retail investors can invest between one and 13 lots (Rs 14,960 to Rs 1,94,480), while high net worth individuals (HNIs) can invest between 14 and 66 lots (Rs 2,09,440 to Rs 9,87,360).

Go Digit: IPO allocation

• Qualified institutional buyers (QIB): 75 per cent
• Non-institutional investors (NII): 15 per cent
• Retail investors: 10 per cent

Go Digit: IPO offer details

The Go Digit General Insurance IPO comprises a fresh issue of Rs 1,125 crore, and an offer-for-sale (OFS) of 54,766,392 equity shares by the promoters and other selling shareholders.

The intended use of the net proceeds includes carrying out current business operations and supporting projects suggested by the net proceeds. The company also anticipates benefits from listing the equity shares on stock exchanges, which is expected to improve brand awareness and image among current and prospective consumers.

Go Digit: Promoters and shareholders

Promoters of the company include FAL Corporation, Oben Ventures LLP, GoDigit Infoworks Services Private Limited, and Kamesh Goyal.

Indian cricketer Virat Kohli and actress Anushka Sharma, who are shareholders of the company, are not selling their shares in this public issue.

Go Digit: Lead managers

The book running lead managers for the Go Digit IPO are 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.

Go Digit: Financial performance

Go Digit General Insurance Limited reported a revenue of Rs 39.19 crore at the end of March 31, 2023. The net profit of the company was Rs 35.54 crore. Go Digit also held assets worth Rs 3,346.75 crore at the end of financial year 2022-23.

For the period between April 1, 2023 and December 31, 2023, the company reported Rs 130.83 crore in revenue and Rs 129 crore in net profit. Assets of the company also grew at Rs 3,619.95 crore.

IRDAI imposes Rs 1 crore fine on Go Digit ahead of IPO

On May 4, the Insurance Regulatory and Development Authority of India imposed a penalty of Rs 1 crore on the company for non-disclosure of a change in the conversion ratio of compulsorily convertible preference shares (CCPS). The correct and agreed-upon conversion ratio was "1 CCPS for 2.324 equity shares," which was later changed by the company to "2.324 CCPS for 1 equity share."

Established in 2016, Go Digit General Insurance Limited offers a variety of insurance products, including health, liability, property, marine, travel, and auto insurance policies. Currently, the company's business lines comprise 74 active goods that it has released.