The insurer will raise Rs 2,615 crore via its IPO which includes a fresh share sale of Rs 1,250 crore and an offer-for-sale (OFS) of up to 5.47 crore equity shares amounting to Rs 1,489.65 crore. by its promoters and existing shareholders of the company
Valuation of insurer at the upper end of the price band(Rs 258-272 per share) will be at Rs 26,438 crore
In FY 24, the general insurer had seen its total premium rising by almost 30 per cent to Rs 7941 crore
Mumbai:
Clearing all its regulatory compliance hurdles, Indian born Canadian billionaire Prem Watsa promoted Go Digit General Insurance will open its IPO on May 15 and close on May 17.
The insurer, which was set up in 2017 as a joint venture between Watsa’s Fairfax and a former senior official of Allianz Kamesh Goyal, has fixed a price band in the range of Rs 258-272 per share for the IPO.
Fairfax currently owns 45.3 per cent of the holding company Go Digit Infoworks, which has 83 per cent stake in Digit Insurance. Post IPO Go Digit Infoworks stake in the JV will fall to 75-76 per cent.
Go Digit’s proposed IPO comprises fresh issuance of equity shares worth Rs 1,125 crore and an Offer-for-Sale (OFS) of 5.47 crore equity shares by promoter Go Digit Infoworks Services and existing shareholders worth Rs 1,490 crore,according to the draft prospectus.
The company price band of the issue will be declared on Friday, May 10 and it will raise Rs 2,615 crore via its IPO which includes a fresh share sale of Rs 1,250 crore and an offer-for-sale (OFS) of up to 5.47 crore equity shares amounting to ₹1,489.65 crore. by its promoters and existing shareholders of the company.
The valuation of insurer at the upper end of the price band(Rs 258-272 per share) will be at Rs 26,438 crore, a 17 per cent discount to its last private placement at Rs 328 per share.
The company, which has been planning to go public for the last two years, had received the capital market Sebi’s approval in March 2024 to launch its initial stake sale after facing multiple delays in the approval process.
Last week, the Indian insurance regulator IRDAI had slapped a fine of Rs 1 crore against the company as it had changed the shareholding of the company without informing the regulator.
The company’s latest balance sheet for FY 24 is not available yet. In Fy 23, the insurer had shown both profit before tax and profit after tax at Rs 35.55 crore. Its underwriting losses in Fy 23 were at 683 crore.The company’s underwriting losses during the first six months were at Rs 385 crore.
In FY 24, the general insurer had seen its total premium rising by almost 30 per cent to Rs 7941 crore.
Go Digit intends to use the funds raised from its IPO for strengthening its capital reserves and ensuring financial stability.
ICICI Securities, Morgan Stanley India Company, Axis Capital, HDFC Bank, Edelweiss Financial Services and IIFL Securities are book running lead managers to Go Digit’s IPO, while Link Intime India has been appointed as the registrar for the issue. Shares of the company shall be listed on both BSE and NSE.