Go Digit General Insurance Makes Lukewarm Debut on Stock Market

Go Digit General Insurance made a lukewarm debut on the stock market today as its shares opened with a modest 5% premium at ₹286 per share on the National Stock Exchange (NSE). On the Bombay Stock Exchange (BSE), the opening price of Go Digit shares was ₹281.10 apiece, representing a 3.35% increase over the issue price of ₹272.

The final day of subscriptions for the Go Digit IPO revealed that the issue was oversubscribed by 9.60 times, with different subscription rates across various investor categories. Qualified Institutional Buyers (QIBs) subscribed 12.56 times, non-institutional investors 7.24 times, and retail individual investors (RIIs) 4.27 times.

On the 15th of May, the Go Digit General Insurance IPO opened for subscriptions and concluded on the 17th of May, showing significant interest from investors. Specifically, the IPO saw high demand, with 79% subscription on the second day and 36% on the first day.

Key promoters of Go Digit General Insurance include Kamesh Goyal, GoDigit Infoworks Services Private Limited, Oben Ventures LLP, and FAL Corporation. Noteworthy investors in the company include Virat Kohli, who invested ₹2 crore for 2.67 lakh shares, and his wife, Anushka Sharma, who invested ₹50 lakh in a private placement.

According to the Red Herring Prospectus (RHP), Go Digit is recognized as a leading digital full-stack non-life insurance provider with a unique approach to designing, distributing, and enhancing customer experience in the non-life insurance sector through technology-powered solutions.

Go Digit General Insurance reported a substantial growth in revenue (113.35%) and profit after tax (112.01%) between March 31, 2022, and March 31, 2023, demonstrating the company’s financial strength and expansion in the insurance market.

The Go Digit IPO consists of an offer-for-sale (OFS) by promoters and other selling shareholders, along with a fresh issue totaling ₹1,125 crore. Leading book running managers for the IPO include Axis Capital Limited, Edelweiss Financial Services Ltd, and HDFC Bank Limited, with Link Intime India Private Ltd as the issue registrar.

Furthermore, the company aims to utilize the IPO proceeds to support its operational activities as well as strategic projects. The listing of Go Digit shares on stock exchanges is expected to enhance the company’s visibility and reputation among existing and future customers, leading to potential growth in its market presence.

Go Digit shares were trading at a premium of ₹8 in the grey market, indicating positive investor sentiment towards the company’s performance. The expected listing price per share is ₹280, offering a 2.94% premium over the IPO price of ₹272, based on the upper end of the pricing range and the grey market premium.