Go Digit IPO: Issue subscribed over 9.6 times on final day, QIBs bet big

The Rs 2,615 crore initial public offer (IPO) of the Fairfax-backed Go Digit General Insurance closed on Friday, with the issue getting subscribed over 9.6 times.

According to the exchange data, the retail investor portion of the issue was subscribed 4.27 times. The qualified institutional buyers’ portion was booked 12.56 times, while that of non-institutional investors was bought over 7.24 times.

Following the IPO, the promoter stake in the company will reduce to 75 per cent from the current 83 per cent. The promoter group includes Fairfax, GoDigit Infoworks, Kamlesh Goyal, and Oben Ventures. The issue’s price band was set at Rs 258 to Rs 272 per equity share.

The IPO offering comprised a fresh issue of equity shares up to Rs 1,125 crore and the rest was the offer for sale. Proceeds from the sale of fresh shares will be used by the company to improve the capital base and maintain solvency levels.

At present the company's solvency level is 160 per cent against the mandate of 150 per cent set by the insurance regulator. With the fund infusion, it will surge to 200 per cent, according to the management.

ICICI Securities, Morgan Stanley India, Axis Capital, HDFC Bank, IIFL Securities, Nuvama Wealth Management, and Link Intime India were the book-running lead managers for the issue.