IRDAI gave Go Digit General Insurance the go-ahead to IPO
- ByStartupStory | November 28, 2022
According to CNBC-TV18, the insurance regulator IRDAI gave final approval on November 25 for Fairfax-backed Go Digit General Insurance Ltd. to list on the BSE and NSE stock markets.
Go Digit General Insurance Ltd. submitted preliminary documents to the market regulator Sebi in August to raise money through an initial public offering (IPO). Among the company’s investors are actor Anushka Sharma and cricketer Virat Kohli. The anticipated initial share sale, however, had been “abeyance” by the Securities and Exchange Board of India without an explanation.
According to the draught red herring prospectus, the IPO consists of a fresh issuance of equity shares worth Rs. 1,250 crore and an offer-for-sale (OFS) of 10,94,45,561 equity shares by a promoter and existing shareholders. The OFS is being used by Go Digit Infoworks Services Pvt. Ltd. to sell 10,943,478 equity shares.
The business may also think about pre-IPO placements of equity shares totaling up to Rs 250 crore. If such a placement is successful, the size of the new issue will be decreased. The latest issuance proceeds will be put to use for general corporate purposes, boosting the company’s capital base, and maintaining solvency levels. With a gross written premium (GWP) of Rs 5,268 crore, Rs 3,243 crore, and Rs 2,252 crore in the fiscal years 2022, 2021, and 2020, and a compound annual growth rate (CAGR) of 53% from fiscal 2020 to fiscal 2022, the Bengaluru-based company has a history of generating growth. The issue’s book-running lead managers are ICICI Securities, Morgan Stanley India Company, Axis Capital, Edelweiss Financial Services, HDFC Bank, and IIFL Securities.
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