Go Digit IPO Day 2 subscription status: Issue booked 67% so far, GMP dips

Go Digit IPO Day 2: The grey market premium (GMP) of Go Digit Insurance has fallen to Rs 15 from Rs 45 on May 15

Go Digit IPO Subscription status: The initial public offer (IPO) of Virat Kohli and Anushka Sharma-backed Go Digit Insurance walked past the half way mark, and was subscribed 67 per cent till 4:00 PM on Thursday, May 16, 2024. Today is the second day of bidding for this IPO.

The IPO subscription was led by retail investors, whose portion was subscribed 2.45x till 4:00 PM. That apart, non-institutional investors (NIIs) have, so far, subscribed 65 per cent of the portion reserved for them.

Qualified Institutional Buyers (QIBs) have bid for 9 per cent of the offer resrved for them.

Go Digit Insurance aims to raise Rs 2,615-crore via the IPO. It has fixed a price band of Rs 258 to Rs 272 per equity share.

The IPO of the Bengaluru-based insurance firm is a combination of fresh issue of 41.4 million shares, worth Rs 1,125.00 crore, and offer for sale (OFS) of 54.8 million shares aggregating to Rs 1,489.65 crore.

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Go Digit GMP today, May 16:

The grey market premium (GMP) of Go Digit Insurance has fallen further to Rs 15, from Rs 45 on May 15, and Rs 50 on May 14, 2024.

With this, the listing gain is barely 6 per cent at the upper price band.

About Go Digit Insurance

Go Digit is a Bengaluru-based full-stack digital insurance company offering motor, health, travel, property, marine, liability and other insurance products.

The company provides customised insurance policies, and has launched a total of 74 active products across all its business lines so far.

Financially, Go Digit posted a net profit of Rs 1,290 crore for 9MFY24, up from merely Rs 100.21 crore for the corresponding period of FY23.

At the end of FY23, Go Digit had profit of Rs 355.47 crore. Go Digit, however, posted an operating loss for the nine months ended December 2024, 

Should you apply to Go Digit IPO? What analysts say:

According to analysts at SMIFS Ltd, the company's operating loss is gradually decreasing, which is expected to continue in FY25. In light of the robust growth, the company has been able to deliver and is expected to deliver coupled with robust industry prospects in India. They, thus, recommend subscribing to the issue as a long-term investment.

"Besides, the company is continuously investing in technology to optimise customer experience and boost operating leverage. We recommend subscribing to this IPO, with a medium to long term perspective, given the huge growth and margin expansion potential," said those at Mastertrust Broking.