Virat Kohli-Backed Go Digit General Insurance’s IPO Approval

In a world of constant innovation, Go Digit General Insurance stands out as a trailblazer, redefining the insurance landscape in India. Established as one of the first non-life insurers in the country to operate fully on the cloud, Go Digit has embraced technology to provide seamless and efficient services to its customers.

Tech-Driven Approach

Go Digit’s focus on technology is evident in its development of application programming interface (API) integrations with several channel partners. This tech-driven approach has not only streamlined its operations but also enhanced its ability to reach a wider audience.

IPO Approval

Recently, the Securities and Exchange Board of India (Sebi) gave its go-ahead for Go Digit to raise funds through an initial public offering (IPO). This approval is a testament to the company’s strong growth trajectory and market potential.

Key Details of the IPO

The IPO comprises a fresh issuance of shares worth Rs 1,250 crore and an offer-for-sale (OFS) of 10.94 crore shares by promoter Go Digit Infoworks Services and existing shareholders. The proceeds from the fresh issuance will be utilised for capital augmentation, maintenance of solvency levels, and general corporate purposes.

Financials Before Go Digit IPO

Go Digit reported an underwriting loss of Rs 1,917 crore and a net operating loss of Rs 1,171 crore between 2018 and 2022. However, the company also generated Rs 746 crore in investment income during the same period. These figures offer a glimpse into Go Digit’s financial health before its initial public offering. The company is backed by book-running lead managers ICICI Securities, Morgan Stanley India, Axis Capital, Edelweiss Financial Services, HDFC Bank, and IIFL Securities.

Celebrity Investors

Notably, cricketer Virat Kohli and actor Anushka Sharma are among the investors in the firm, adding a touch of glamour to its investor profile.

Journey to IPO

Go Digit’s journey to the IPO hasn’t been without its challenges. Initially filing its draft IPO papers in August 2022, the company faced setbacks due to compliance requirements related to the employee stock appreciation rights scheme. However, after re-filing the documents with updates, the company received Sebi’s observation letter, paving the way for the IPO launch.

Diverse Product Offerings

Go Digit offers a wide range of insurance products, including motor insurance, health insurance, travel insurance, property insurance, marine insurance, and liability insurance. This diverse portfolio caters to the varying needs of its customers, ensuring comprehensive coverage and peace of mind.

Conclusion

Go Digit General Insurance’s journey is a testament to the power of innovation and technology in transforming traditional industries. As it prepares for its IPO, the company is poised to continue its growth trajectory and further revolutionize the insurance industry in India.

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.