Go Digit IPO: Issue subscribed 79% on Day 2, retail portion booked 2.54 times so far

Approximately 75 percent of the issue size has been allocated for qualified institutional investors

Go Digit General Insurance's initial public offer (IPO) received a decent subscription heading into the second day of bidding on May 16 as the issue was subscribed 79 percent. The offer received bids for 4.17 crore shares as against 5.28 crore shares on offer.

The Rs 2,614.65-crore IPO is a mix of a fresh issue of 4.14 crore shares worth Rs 1,125 crore and an offer for sale of 5.48 crore shares worth Rs 1,489.65 crore.

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The public issue was subscribed 2.54 times in the retail category. Non-institutional investors bought 73 percent of their allotted quota. The portion for qualified institutional buyers (QIBs) was booked 24 percent, exchange data showed.

ALSO READ | Go Digit IPO: 10 things to know before subscribing to the Rs 2,614-crore issue

A day before the issue opened on May 14, the insurance technology company backed by Fairfax secured approximately Rs 1,176 crore from anchor investors, which include Fidelity, Abu Dhabi Investment Authority (ADIA), and hedge fund Bay Pond Partners. Allocating 4.32 crore equity shares to 56 funds at Rs 272 each, the company priced them at the upper end of the price band.

READ MORE | Virat Kohli and Anushka Sharma's Go Digit investment grows 3x as firm heads for IPO

Approximately 75 percent of the issue size has been allocated for qualified institutional investors, 15 percent for non-institutional investors, and the remaining 10 percent for retail investors. Investors may bid for a minimum of 55 equity shares and multiples of 55 equity shares thereafter.

Go Digit plans to utilise the net proceeds to support its current business operations and to finance the proposed activities identified for funding. Additionally, the company anticipates that listing its equity shares on the stock exchanges will enhance its visibility and brand image among both existing and potential customers.

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