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Go Digit Secures Rs 1,176 Crore from Anchor Investors Ahead of IP

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Go Digit General Insurance has successfully raised Rs 1,176 crore ($141 million) by allocating shares to anchor investors as part of its initial public offering (IPO). The company’s board approved the offering of 4,32,57,009 equity shares at an issue price of Rs 272 each, according to a regulatory filing with the Bombay Stock Exchange.

Prominent investors such as SBI, ICICI Prudential, Axis Mutual Fund, Mirae Asset, Tata Flexi, Motilal Oswal, PGIM India, and Edelweiss participated in this allocation. Specifically, 1,44,96,570 equity shares were distributed to 11 domestic mutual funds through 23 schemes.

Go Digit’s IPO, which commenced today and will run until May 17, 2024, features a price band of Rs 258-272 per share, with a minimum bid requirement of 55 shares. The company aims to raise funds through a fresh issue of equity shares worth Rs 1,125 crore and an offer for sale of up to 5,47,66,392 equity shares.

The Gurugram-based insurer had previously revised its IPO size following a refiling of its draft papers last year. The firm recently faced a fine from the Insurance Regulatory and Development Authority of India (IRDAI) for delays in filing particulars of a joint venture agreement.

Go Digit Infoworks Services holds the largest stake in the company at 80.57%, followed by TVS Shriram Growth at 3.43%. Other significant shareholders include A91 Engineering (3.23%), Faering Capital (2.06%), and Peak XV (1.00%).

For the nine months ending December 2023, Go Digit reported a net revenue of Rs 5,631 crore and a profit of Rs 129 crore. The previous fiscal year saw a revenue of Rs 5,909 crore and a profit of Rs 35.5 crore.