Go Digit IPO oversubscribed 9.6 times on final day
The qualified institutional buyers subscribed 12.56 times their allotted share on the final day of bidding for Go Digit's IPO.
Insurtech company Go Digit's initial public offering (IPO) was subscribed 9.6 times on the final day of bidding, with institutional investors emerging as the strongest backers for the issue.
The IPO is a Rs 2,614.65 crore issue with a mix of fresh issues of equity shares and an offer for sale. The company has already raised Rs 1,176 from a group of anchor investors.
Go Digit priced its IPO in the range of Rs 258-272 per share.
As per data on the , the qualified institutional buyers (QIB) subscribed 12.56 times their allotted share on the final day of bidding, where they bid 36,22,69,545 shares as against the allotted share of 2,88,38,007.
The BES filing added that non-institutional investors subscribed 7.24 times, while retail investors subscribed 4.27 times.
The insurtech unicorn's IPO is keenly watched by the Indian startup ecosystem as it is the first company to go public in 2024, with , , and waiting for their turn. These companies have filed their draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).
The company plans to utilise the funds raised from the IPO to support its business operations and finance proposed activities. The company also expects the public listing to enhance its brand visibility.
Go Digit, which provides insurance products across health, travel, and vehicle segments, recorded a premium income of Rs 5,115 crore for the nine months ending December 2023, compared with Rs 3,767 crore a year ago. It reported a profit after tax of Rs 129 crore in the nine months compared with Rs 10 crore in FY23.
The insurtech company, which became the first unicorn of 2021, counts Fairfax, Faering Capital, and IIFL among its investors. Cricketer Virat Kohli and actor Anushka Sharma are also investors in this startup.
The road to IPO for Go Digit has not been smooth as SEBI sent back its first documents filed in August 2022 seeking additional information. The company had to refile the papers in January 2023.
Edited by Suman Singh