IRDAI gives final approval to Go Digit General Insurance for listing

IPO

Insurance regulator IRDAI on November 25 gave final approval to Fairfax-backed Go Digit General Insurance Ltd for listing on stock exchanges, BSE, NSE, according to CNBC-TV18.

Go Digit General Insurance Ltd had in August filed preliminary papers with markets regulator Sebi to garner funds through an initial public offering (IPO).  Cricketer Virat Kohli and his wife actor Anushka Sharma are among the investors in the firm.

However, the Securities and Exchange Board of India had kept in "abeyance" the proposed initial share sale without clarifying the reason.

The IPO comprises fresh issuance of equity shares worth Rs 1,250 crore and an offer-for-sale (OFS) of 10,94,45,561 equity shares by a promoter and existing shareholders, according to the draft red herring prospectus (DRHP).

Under the OFS, Go Digit Infoworks Services Pvt Ltd will sell 10,94,34,783 equity shares.

Also, the company may consider a pre-IPO placement of equity shares aggregating up to Rs 250 crore. If such placement is completed, the fresh issue size will be reduced.

Proceeds from the fresh issuance will be utilized for the augmentation of the company's capital base and maintenance of solvency levels and general corporate purposes.

Go Digit offers motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and other insurance products, to meet the needs of the customers.

It is one of the first non-life insurers in India to be fully operated on the cloud and has developed application programming interface (API) integrations with several channel partners.

The Bengaluru-based company has a track record of delivering growth with Gross Written Premium (GWP) at Rs 5,268 crore, Rs 3,243 crore and Rs 2,252 crore in financial years 2022, 2021, and 2020, with a compound annual growth rate (CAGR) of 53 per cent from fiscal 2020 to fiscal 2022.

ICICI Securities, Morgan Stanley India Company, Axis Capital, Edelweiss Financial Services, HDFC Bank, and IIFL Securities are the book running lead managers to the issue.