Prem Watsa, CEO, Fairfax
The proceeds from its fresh issuance are worth Rs 1250 crore and will be utilised for the augmentation of the company’s capital base and maintenance of solvency levels and general corporate purposes
Fairfax owned by Indian born Canadian billionaire Prem Watsa holds 49 per cent in the company and is keen to raise it to 74 per cent for which it waiting for the regulatory clearance from the regulator IRDAI
Mumbai:
Fairfax backed five-year old Go Digit General Insurance on Tuesday has filed its Draft Red Herring Prospectus (DRHP) with the markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).
The 5-year old insurer aims to raise around $440 million through an initial public offering (IPO), according to a source with direct knowledge and regulatory documents filed on Tuesday.
Large existing shareholders will also sell up to 109.4 million shares, it said, without specifying the funds that would raise.
The source directly aware of the matter, however, said that sale will raise roughly $282 million, bringing the total IPO size to around $440 million.
Digit declined to comment on the total IPO size.
The proceeds from its fresh issuance are worth Rs 1250 crore and will be utilized for the augmentation of the company’s capital base and maintenance of solvency levels and general corporate purposes.
Fairfax owned by Indian born Canadian billionaire Prem Watsa holds 49 per cent in the company and is keen to raise it to 74 per cent for which it waiting for the regulatory clearance from the regulator IRDAI.
The public issue consists of a fresh issue of equity shares worth up to Rs 1250 crore and an offer-for-sale (OFS) up to 109,445,561 equity shares by promoter and selling shareholders, which comprises up to 109,434,783 equity shares by Go Digit Infoworks Services Private Limited including the stakes of Kameh Goyal and other employees of the company, up to 4,000 Equity Share by Nikita Mihir Vakharia, jointly with Mihir Atul Vakharia, up to 3,778 equity shares by Nikunj Hirendra Shah, jointly with Sohag Hirendra Shah, up to 3,000 equity shares Subramaniam Vasudevan, jointly with Shanti Subramaniam (“Selling Shareholders”).
The Offer is being made through the book building process, wherein at least 75 per cent of the offer will be available for allocation to qualified institutional buyers(QIB), not more than 15 per cent of the offer will be available for allocation to non-institutional bidders, and not more than 10 per cent of the offer will be available for allocation to retail individual bidders.
Additionally, the company in consultation with merchant bankers to the issue may consider a pre-IPO placement of equity shares, or any other method aggregating up to Rs. 250 crores. If such placement is completed, the fresh issue size will be reduced.
ICICI Securities, Morgan Stanley India Company, Axis Capital, Edelweiss Financial Services, HDFC Bank, and IIFL Securities are the book-running lead managers for the issue. The equity shares of the company will be listed on BSE and NSE.
The company’s promoters are Kamesh Goyal, Go Digit Infoworks Services Private Limited, Oben Ventures LLP and FAL Corporation, which is part of Fairfax holdings.
Go Digit offers motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and other insurance products, to meet the needs of the customers and has 2500 employees working 48 offices of the company.
The company had a reserve of Rs 1347 crore as on Dec 31,2021.