Sebi keeps Virat Kohli-backed Go Digit IPO on hold

Market regulator Sebi is keeping cricketer Virat Kohli-backed Go Digit General Insurance IPO on hold. Go Digit filed a draft prospectus for its initial public offering (IPO) last month. The IPO includes a new issue of 1,250 crore and an offer to sell (OFS) of over 10.94 crore equity shares by the selling shareholders. However, Sebi did not elaborate further on the IPO in its latest statement of draft offering documents.

Sebi’s latest processing status of the draft offering documents was released on September 16.

As part of the status report, Sebi attributed the “broadcast of outstanding sightings” to Go Digit’s IPO. No other information was disclosed.

Generally, Sebi issues comments on draft offering documents filed within 30 days. A “pending” status does not mean that the IPO is rejected. In accordance with the latest guidelines published in February 2020, Sebi is obligated to suspend the publication of observations for 30 days or 45 days, or 90 days or more, as the case may be.

For Go Digit’s IPO, the lead coordinating manager is ICICI Securities.

According to the draft prospectus filed on August 17, Go Digit plans to launch an initial public offering consisting of a new issue worth 1,250 crore and an offer to sell (OFS) of up to 109,445,561 shares. Under OFS, the selling shareholders are — Go Digit Infoworks Services, Nikita Mihir Vakharia jointly with Mihir Atul Vakharia, Nikunj Hirendra Shah jointly with Sohag Hirendra Shah and Subramaniam Vasudevan jointly with Shanti Subramaniam.

The par value of the shares to be offered as part of the IPO is 10 per share.

ICICI Securities, Morgan Stanley, Axis Capital, Edelweiss Financial Services, HDFC Bank and IIFL Securities are the lead (BRLM) managers of the IPO.

Go Digit plans to use the net proceeds from the IPO to increase its capital base and maintain its solvency levels. However, the proceeds of the sale offer will go directly to the selling shareholders mentioned above.

Besides cricketer Virat Kohli, his wife Anushka Sharma and Canadian group Fairfax are among the investors in the company.

Go Digit aims to simplify insurance. Through innovation and transparency, the insurer believes in providing a seamless customer experience in an important financial product that an individual would purchase in their lifetime.

The company is one of the leading comprehensive digital insurance companies, offering auto insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance and other insurance products.

Go Digit has a proven track record of growth. Its GWP was 52.68 billion, 32.43 billion, and 22.52 billion in fiscal years 2022, 2021 and 2020, representing a CAGR of 52.9% from fiscal year 2020 to fiscal year 2022.

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