Virat Kohli-backed Go Digit sets IPO price band at ₹258-272
Go Digit General Insurance, a company supported by Indian cricketer Virat Kohli and actor Anushka Sharma, has announced the price band for its initial public offering (IPO) to be ₹258-272 per share. The total issue size of the IPO is projected to be approximately ₹2,615 crore. Investors will have the opportunity to bid for a minimum of 55 equity shares in one lot and multiples thereafter.
Subscription and bidding details for Go Digit's IPO
The subscription for the IPO will commence on May 15 and will remain open until May 17. The anchor investor bidding is set to start one day prior to the bid/offer opening date, which is May 14. Following the announcement of the IPO, shares of Go Digit Insurance have seen a premium of ₹50 in the unlisted market.
Go Digit's IPO comprises fresh share sale and OFS
The IPO includes a fresh share sale of ₹1,125 crore and an offer-for-sale of up to 5.47 crore equity shares amounting to ₹1,489.65 crore. Promoter Go Digit Infoworks and other existing shareholders are offloading stakes via the public offer. Kohli and Sharma are not selling their shares in the IPO. At the upper price band of ₹272, the total investment made by the couple, which amounts to nearly ₹2.5 crore, would result in a valuation of over ₹9 crore.
Go Digit's IPO allocation and use of proceeds
The net issue has been divided with 75% reserved for qualified institutional bidders (QIBs), 15% for non-institutional investors, and the remaining 10% for retail investors. The capital raised from the IPO will be used for existing business activities and general corporate purposes. Meanwhile, the proceeds from the OFS will go to the selling shareholders of the company.
Go Digit's financial performance and IPO approval
For the nine months ended on December 31, 2023, Go Digit posted a net profit of ₹129 crore and a revenue of ₹131 crore. The Bengaluru-based general insurance company received approval to launch its IPO in March after overcoming multiple compliance issues. The company provides health, travel, property, marine, liability, and other general insurance services.
