Go Digit stock gains 11% over IPO price after muted listing

Go Digit IPO: The price band for the issue has been fixed at Rs 258-Rs 272 per share.

Go Digit General Insurance made a quiet debut on the stock exchanges on May 23 after listing at Rs 286. That's a premium of just 5.14 percent over the issue price of Rs 272.

Soon after the listing, the share price gained 6 percent further to trade 11 percent higher at Rs 301.

The listing gains are largely in line with grey market estimates where shares were trading at a premium of 3 percent. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day.

Follow our live blog for all the market updates

The Rs 2,614.65-crore public offer, in which Virat Kohli and Anushka Sharma are investors, was subscribed 9.6 times. The offer received bids for 50.76 crore shares against 5.28 crore shares. The public issue was subscribed 4.27 times in the retail category. Non-institutional investors bought 7.24 times their allotted quota. The portion for qualified institutional buyers (QIBs) was booked 12.56 times their portion.

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

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.

A day before its issue opened on May 14, the insurance company backed by Fairfax secured approximately Rs 1,176 crore from anchor investors. These investors included Fidelity, the Abu Dhabi Investment Authority (ADIA), and hedge fund Bay Pond Partners. The company allocated 4.32 crore equity shares to 56 funds for Rs 272 each, the upper price band.

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

Incorporated in December 2016, Go Digit is an insurance provider offering various products such as health, travel and property insurance. The company has launched a total of 74 active products across all its business lines.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.