Virat Kohli-Backed Go Digit Insurance Sets IPO Price Band
The insurance company's shareholders include cricketer Virat Kohli and Bollywood actor Anushka Sharma.
Go Digit General Insurance Ltd. has set a price band of Rs 258–272 per share for its initial public offering that is set to open on May 15. The IPO consists of a fresh issue of equity shares aggregating up to Rs 1,125 crore. The offer-for-sale portion will consist of up to 5.47 crore equity shares with a face value of Rs 10 each.
The total offer for sale has been revised from 10.9 crore equity shares, while the fresh issue was brought down from Rs 1,250 crore, according to the draft Red Herring Prospectus filed earlier by the company.
The bidding date for anchor investors is May 14 for the public offer, while the bidding lot size for the issue is 55 equity shares.
The insurance company's shareholders include cricketer Virat Kohli and Bollywood actor Anushka Sharma. The prospectus showed that Kohli and Sharma are not among the selling shareholders in this issue.
The company aims to utilise the net proceeds towards maintenance of its solvency ratio by investing in instruments and in the manner prescribed under the Irdai Actuarial & Allied Regulations, as stated in the RHP.
The issue's book-running leading managers include ICICI Securities Ltd., Morgan Stanley, Axis Capital, HDFC Bank Ltd., IIFL Securities Ltd., and Nuvama Wealth Management.
Business
Go Digit General Insurance offers motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance and other insurance products, which customers can customise to meet their needs.
The insurer currently has launched a total of 74 active products across all its business lines. Its distribution footprint stood across 24 of the 36 states and union territories in the country as of Dec. 31, 2023. It also has relationships with approximately 61,972 key distribution partners.
The company also offers products directly to customers through their website and web aggregators.
Key Risks
The company has a track record of reporting loss and has disclosed that it may not be able to maintain profitability in the future.
The company's loss reserves are based on estimates as to future claims liabilities and if they prove inadequate, it could lead to further increases in reserves.
Catastrophic events, including natural disasters could materially increase their liabilities for claims by customers.
There are outstanding legal proceedings involving our company. and their promoters and directors.
Changes in interest rates or adverse movements in the equity markets in India could impair the value of investment portfolio and have a material adverse effect on business.
