Go Digit Subscription Status, Day 3:IPO subscribed 9.5x so far on final day

Go Digit IPO Subscription Status, May 17: Retail investors' portion was booked (4x), NII portion (7.1x), and QIB portion (12.56x)

Go Digit Subscription Status, Day 3, May 17, 2024: The initial public offer (IPO) of Go Digit Insurance garnered strong investor interest on the third and final day of bidding. Till 3:50 PM on Friday, May 17, 2024, the issue was subscribed 9.52x, where retail investors' portion was booked 4x, NII portion 7.1x, and QIB portion 12.56x.

Go Digit Insurance is a Bengaluru-based insurance firm which aims to raise Rs 2,615-crore via its IPO. The offer 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.

Investors can bid for Go Digit Insurance IPO in a price band of Rs 258 to Rs 272.

Go Digit Insurance IPO GMP today:

The grey market premium (GMP) of Go Digit Insurance stands at Rs 15 per share. It has dropped from Rs 45 quoted on May 15, and Rs 50 on May 14, 2024.

Go Digit IPO details

Go Digit IPO, which is backed by the Fairfax Group in Canada, was subscribed 79 per cent till May 16, 2024.

Retail investors' portion was oversubscribed with 2.54 times bidding, while non-institutional investors' portion was booked 73 per cent. The qualified institutional buyers portion was booked 24 per cent at the end of Day 2 of bidding.

Go Digit IPO has set aside 75 per cent of the shares for QIBs, 15% per cent for NIIs, and 10 per cent for retail investors.

The IPO raised little over Rs 1,176 crore from anchor investors. 56 funds were allotted 43.2 million equity shares valued at Rs 272 per share.

Go Digit IPO: Should you bid on the last day?

Analysts believe Go Digit Insurance is a long-term bet as the company is continuously investing in technology to optimise customer experience and boost operating leverage. 

"Go Digit IPO, at the upper price band, commands a P/GWP multiple of 3.44x based on annualised post-issue data from FY24 that ends in September. With cutting-edge technology and predictive underwriting algorithms, the company has reliable distribution partners. The company has good long-term prospects," said HEM Securities.

By comparison, ICICI Lombard General Insurance firm Ltd. has P/E of 48.14x, Star Health and Allied Insurance Company Ltd. has P/E of 53.79x, and New India Assurance Company Ltd. (with a P/E of 38.47x).