Go Digit General Insurance Limited is launching its IPO. The IPO opens for subscription on 15th May and will close on 17th May 2024.
What does Go Digit General Insurance Limited do?
Incorporated in 2016, Go Digit General Insurance Limited is a digital full-stack insurance company offering motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and other insurance products, which the customers can customize according to their needs.
Source: Company’s RHP
As of December 31, 2023, the company had a distribution footprint across 24 of the 36 states and union territories in India and relationships with approximately 61,972 Key Distribution Partners, including approximately 58,532 POSPs, as well as individual agents, corporate agents, brokers, and others.
What is the issue size of the Go Digit General Insurance Limited IPO?
The 2,614.65 crore public offer of the company is a combination of a Fresh equity issue worth 1,125 crore and an offer for sale (OFS) worth Rs. 1,489.65 crore from the existing shareholders.
Financials of Go Digit General Insurance Limited
| Financial Year | Total Assets (₹ crores) | Total Revenue (₹ crores) | Profit After Tax (₹ crores) | EPS |
|---|---|---|---|---|
| March 31, 2021 | 1,874.80 | (-118.55) | (-122.76) | (-1.50) |
| March 31, 2022 | 2,919.01 | (-293.64) | (-295.85) | (-3.55) |
| March 31, 2023 | 3,346.75 | 39.19 | 35.54 | 0.41 |
| December 31, 2023 | 3,619.95 | 130.83 | 129.02 | 1.48 |
Schedule/Timeline of Go Digit General Insurance Limited
| Issue Period | 15th May to 17th May 2024 |
|---|---|
| Price band | ₹ 258 to 272 |
| Minimum Bid quantity | 55 |
| Deadline for accepting UPI mandate | Until 5 PM on the issue closing day |
| Finalization of Allotment | May 21, 2024 |
| Initiation of Refunds | May 22, 2024 |
| Credit of Shares | May 22, 2024 |
| Date of Listing | May 23, 2024 |
| Mandate end date | June 1, 2024 |
| Anchor Investors Lock-In End Date (50% of the investment) | June 21, 2024 |
| Anchor Investors Lock-In End Date (Remaining investment) | August 21, 2024 |
Note: Given that the above schedule is tentative, it should be noted that the anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares, and 90 days after for the remaining portion.
Risk factors to consider:
Past losses and future uncertainty: The company has a track record of reporting losses and, they may not be able to maintain profitability in the future. It’s limited operating history makes it difficult to accurately evaluate future business prospects.
Potential risks to the business: Catastrophic events, including natural disasters, terrorist attacks, or nuclear disasters, could materially increase the liabilities for claims by customers, result in losses in its investment portfolios, and have a material adverse effect on the business, financial condition, and results of operations.