Go Digit General Insurance Lists at 5% Premium at Rs 286 per share on NSE!

Go Digit General Insurance Limited offers a range of insurance products, including motor, health, travel, property, marine, liability, and other customizable insurance options to meet customers’ needs, debuted on the Indian stock market today.

The stock of Go Digit General Insurance Limited settled at Rs 281.10 per share on the BSE, representing an impressive 3.35% premium over the final issue price of Rs 272 per share. Additionally, on the NSE, the company’s shares opened at Rs 286 per share, indicating a gain of 5.15%. The market capitalisation on the BSE stands at around Rs 26,406 crore.

IPO Proceeds

The Company proposes to utilise the Net Proceeds towards the following objects:

• To undertake its existing business activities.
• To undertake the activities proposed to be funded from the Net Proceeds. Further, the Company expects to receive the benefits of listing the Equity Shares on the Stock Exchanges, which, the company believes, will enhance the visibility and its brand image among its existing and potential customers.

Business Overview

Incorporated in December 2016, Go Digit General Insurance Limited offers a range of insurance products, including motor, health, travel, property, marine, liability, and other customizable insurance options to meet customers’ needs. The company has launched a total of 74 active products across all its business lines.

As of December 31, 2023, Go Digit General Insurance had approximately 61,972 partners, including 58,532 POSPs and other agents. By the same date, the company had established distribution centers in 24 states and union territories across India and employed 473 active bots to automate tasks for various functions and partners.

Subscription details

As of May 17, 2024, the Go Digit General Insurance IPO was subscribed 9.60 times. The public issue saw a subscription rate of 4.27 times in the retail category, 12.56 times in the QIB category, and 7.24 times in the NII category.

The IPO price band was Rs 258 and Rs 272, with a face value of Rs 10 per share and a lot size of 55 shares. The total size of the company’s IPO was Rs 2615 crore, and the final share issue price was fixed at Rs 272 each.

Conclusion

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Investors who applied for listing gains only have already earned 5% on the listing day itself and can choose to book the profit generated or watch for at least the first 15 minutes and then set a stop-loss at the day’s low price. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.