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Go Digit Insurance IPO: 10 things you need to know before subscription including GMP, price band

Go Digit Insurance IPO GMP: According to market analysts, the current GMP of Go Digit in the unlisted market is Rs 42.

Go Digit Insurance IPO: The IPO of Go Digit Insurance is being eagerly awaited and this wait is about to end now. The initial public offering (IPO) of Go Digit Insurance will open for subscription on May 15 and close on May 17. Through the public offer, the company plans to raise approximately Rs 2615 crore. Here are 10 things to know about Go Digit IPO before subscribing to the issue.

1) Go Digit Insurance Business Overview

Go Digit is one of the leading digital full stack insurance companies, leveraging technology to empower an innovative approach to product design, distribution and customer experience for non-life insurance products. Digital full stack insurance companies are licensed insurance operators or companies that have end-to-end digital capabilities and a digital-first approach across the customer’s insurance value chain.

2) Industry Overview

The Indian non-life insurance industry contributed approximately $33.30 billion to the GWP in FY23, showing a CAGR of 11.2% from FY18 to FY23. It is estimated that, in the nine months ending December 2023, non-life insurance contributed about $27.50 billion to GWP, up from $24.60 billion in GWP for the nine months ending December 2022. This clearly indicates positive growth momentum.

3) Go Digit Insurance IPO Price Band

The company has set a price band of Rs 258-278 per share for its first public offering. The minimum lot size is 55 shares. On the upper end the company plans to raise Rs 2615 crore.

4) Go Digit Insurance IPO Size

The IPO includes a fresh equity issue of Rs 1125 crore and an offer for sale (OFS) of 5.47 crore shares. Under the OFS, promoter Go Digit Infoworks and other existing shareholders will sell stake while Virat Kohli and Anushka Sharma will remain investors.

5) Go Digit Insurance IPO Structure

About 75% of the offer is reserved for qualified institutional buyers, 15% for non-institutional investors and the remaining 10% for retail investors.

6) Objectives of Go Digit Insurance IPO

The insurance firm plans to use the net income towards increasing its capital base and maintaining solvency levels.

7) Go Digit Insurance IPO GMP

According to market analysts, the current GMP of Go Digit in the unlisted market is Rs 42.

8) Go Digit Insurance Financial Performance

In the nine-month period ending December 2023, Go Digit’s net earned premium increased to Rs 5115 crore, from Rs 3767 crore in the corresponding period of the previous financial year. It reported profit after tax of Rs 129 crore in the 9-month period compared to Rs 10 crore in the first 9 months of FY23.

9) Important dates of Go Digit Insurance IPO

Share allotment for the IPO will be finalized on May 21 and the estimated listing date is May 23.

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Bhupendra Pratap
Bhupendra Pratap
Bhupendra Pratap has over 3 years of experience in writing finance content, entertainment news, cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @insuranceindiaain@gmail.com
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