Bengaluru-based insurtech start-up Go Digit General Insurance on Friday announced that its Rs 2,615 crore IPO, which will open on May 15 and close on May 17, will have a price band of Rs 258 to Rs 278 per share.The IPO comprises a fresh issue of shares worth Rs 1,125 crore and an offer for sale (OFS) of 54,766,392 shares, according to the draft prospectus. At the upper price band of Rs 272, the OFS would be worth about Rs 1,489.64 crore.Bids can be made for a maximum of 55 equity shares and in multiples of 55 shares thereafter. About 75% of the IPO has been kept reserved for QIB (qualified institutional buyers), 15% for non-institutional investors and the remaining 10% for retail investors.Also read | Go Digit IPO to open on May 15; Virat Kohli, Anushka Sharma not selling sharesThe PE ratio, based on the diluted EPS for 2023, at the upper range of the price band is 680x as compared to the average industry peer group of 46.13x.In the IPO, promoter Go Digit Infoworks and other existing shareholders are offloading stakes while star couple Virat Kohli and Anushka Sharma will remain investors.In 2020, cricketer Virat Kohli bought 266,667 shares of the company for Rs 2 crore while actress wife Anushka Sharma invested 50 lakh through a private placement.Ahead of the IPO, the promoter group including Canada-based Fairfax, Kamesh Goyal, Go Digit Infoworks, and Oben Ventures, owned an 83.31% stake in the company.Go Digit's IPO hit multiple hurdles over compliance issues, which delayed approval for the public offer. Sebi had returned the draft offer document twice as the regulator raised concerns over share issuance.Go Digit, which operates in the general insurance sector and counts Canadian billionaire Prem Watsa's Fairfax Group and A91 Partners among its backers, refiled its IPO papers with Sebi in March last year, which the regulator approved in March this year.The insurance firm plans to utilise the net proceeds towards augmenting its capital base and maintaining the solvency levels.In the nine-month period ending December 2023, Go Digit's net earned premium rose to Rs 5,115 crore vs Rs 3,767 crore in the corresponding period of the previous financial year. It reported a profit after tax of Rs 129 crore in the 9 months vs Rs 10 crore in the first 9 months of FY23.ICICI Securities, Morgan Stanley India, Axis Capital, Edelweiss Financial Services, HDFC Bank, and IIFL Securities are the book-running lead managers for the IPO.As a digital full-stack insurance company, Go Digit offers motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and other insurance products.
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