SEBI puts in ‘Abeyance’ Go Digit’s IPO, Canada’s Fairfox Group funded project

• ByStartupStory     |    September 19, 2022

The Securities and Exchange Board of India (SEBI) has put in “abeyance” the planned initial public offering of Go Digit General Insurance Ltd., which Canada’s Fairfax Group funds. SEBI has not yet provided any further information. 

On August 17, Go Digit submitted preliminary IPO paperwork to the capital markets regulator. According to the draft documents, the initial public offering of the firm would consist of a new issue of equity shares worth Rs 1,250 crore and an offer for the sale of 10,94 crore equity shares by the promoter and existing shareholders. 

Go Digit provides auto insurance, health insurance, travel insurance, property insurance, marine insurance, and other types of insurance. It is one of the first non-life insurers in India to be completely cloud-based and to have created API linkages with several channel partners. The Bengaluru-based firm has a history of development, with gross written premiums of Rs 5,268 crore, Rs 3,243 crore, and Rs 2,252 crore in fiscal years 2022, 2021, and 2020, respectively, and a CAGR of 53% from the fiscal year 2022.

Both cricketer Virat Kohli and actor Anushka Sharma are investors in the company.

Without any elaboration, SEBI stated on September 16, Monday that “issuance of observations (has been) placed in abeyance” for Go Digit’s IPO. SEBI’s release of remarks signifies approval for an initial public offering, and the regulator typically issues its observations on IPO documents within 30 days.

The issue’s book running lead managers are CICI Securities, Morgan Stanley India Company, Axis Capital, Edelweiss Financial Services, HDFC Bank, and IIFL Securities. The HDFC Bank stated this month that it would acquire a 9.94% interest in Go Digit-Life Insurance.

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