23rd May 2024,marked the stock market debut of Go Digit, an event met with moderate enthusiasm among investors. As trading commenced, Go Digit shares entered the market with a lukewarm response. On the National Stock Exchange (NSE), the initial share price stood at ₹286, marking a modest 5.15% increase from the issue price of ₹272. Similarly, on the Bombay Stock Exchange (BSE), shares opened at ₹281.10 each, reflecting a 3.35% uptick from the issue price.
Throughout the subscription period, Go Digit’s IPO garnered significant interest, with the subscription status reaching 9.60 times by the closing day. Notably, the segment reserved for qualified institutional buyers (QIBs) saw an oversubscription of 12.56 times, while non-institutional investors subscribed 7.24 times. Retail individual investors (RIIs) also demonstrated strong interest, subscribing 4.27 times.
The IPO, which ran from May 15 to May 17, witnessed substantial activity, with 79% of subscriptions occurring on the second day and 36% on the first day, according to data from BSE.
Allocation-wise, 10% of the issue size was reserved for retail investors, 15% for non-institutional investors, and the lion’s share, approximately 75%, for qualified institutional investors.
As outlined in the Red Herring Prospectus (RHP), Go Digit positions itself as a leading digital full-stack non-life insurance provider, underscoring its innovative approach to designing, distributing, and enhancing customer experience through technology.
Key stakeholders in the company include Kamesh Goyal, GoDigit Infoworks Services Private Limited, Oben Ventures LLP, and FAL Corporation. Notably, in 2020, renowned cricketer Virat Kohli and his spouse, actress Anushka Sharma, made substantial investments in the company.
From a financial standpoint, Go Digit General Insurance Limited has exhibited robust growth, with revenue and profit after tax (PAT) soaring by 113.35% and 112.01%, respectively, between March 31, 2022, and March 31, 2023. The IPO comprises an offer-for-sale (OFS) of 54,766,392 equity shares by promoters and other selling shareholders, alongside a fresh issue of ₹1,125 crore.
The proceeds from the IPO will bolster the company’s commercial operations and fund projects, with expectations of heightened brand visibility post-listing. ICICI Securities Limited, Axis Capital Limited, Edelweiss Financial Services Ltd, HDFC Bank Limited, and IIFL Securities Ltd are the book running lead managers, with Link Intime India Private Ltd serving as the issue registrar.
The grey market premium (GMP) for Go Digit IPO stands at +8 today, indicating a premium of ₹8 over the issue price. Market analysts anticipate the shares to debut at ₹280 per share, reflecting a 2.94% increase from the IPO price.
Ultimately, the grey market premium signifies investor willingness to pay above the issue price, signaling positive market sentiment towards Go Digit’s prospects.
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