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Go Digit General Insurance Zooms Towards IPO
Go Digit General Insurance Limited, the celebrity-backed digital insurer, is scheduled to launch its highly anticipated Initial Public Offering (IPO) next week. This IPO, which will open for subscriptions on May 15th, 2024 and close on May 17th, 2024, has sparked substantial interest among investors. Here’s a detailed overview of everything you need to know about the Go Digit General Insurance IPO:
IPO Details and Objectives
Go Digit’s IPO is a book-built offering intending to raise around 2,615 crore. The offering consists of a fresh share issuance for ₹1,125 crore and an Offer for Sale (OFS) of existing shares by selling shareholders for ₹1,489.65 crore. The company intends to use the net proceeds from the new issue to maintain its solvency ratio and cover offer expenses.
Price Band and Lot Size
Go Digit’s IPO price band is set at ₹258 to ₹272 per share. This gives potential investors a range of bids for the shares. The minimum order quantity, or lot size, is 55 shares, resulting in a minimum investment amount of ₹14,190 (at the lower end of the price band) or ₹14,960 (at the highest end).
Key dates and Listings
The allotment for the Go Digit IPO is expected to be completed on May 21, 2024. Following this, shares are likely to be credited to Demat accounts on May 22nd, 2024, with a preliminary listing date of May 23rd on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
Company Background and Financials
Go Digit, formed in 2017, has emerged as a key participant in the Indian digital insurance market. It uses technology to provide a wide range of non-life insurance products such as auto, health, travel, and property. The company has over 43 million customers and has seen tremendous increase in its Gross Written Premium (GWP) over the last few years.
Market Perception and Grey Market Premium (GMP)
The Go Digit IPO has generated substantial interest, with a Grey Market Premium (GMP) of ₹65 seen today. GMP is the premium that investors in the unofficial grey market are willing to pay above the issue price, and it can be used to predict the anticipated listing price. The GMP proposes a listing price of ₹65 greater than the highest end of the price bracket. However, it is important to realise that GMP is not an official metric and should be used with caution.
Conclusion
Go Digit’s IPO allows investors to join in the growth story of a premier digital insurer. However, comprehensive study and due diligence are required before making any investing selections. By thoroughly examining the company’s financials, market potential, and associated risks, you can make an informed decision about whether to subscribe to the Go Digit General Insurance IPO.