Virat & Anushka Backed Startup Go Digit IPO To Open For Bids on May 15

Virat Kohli and Anushka Sharma-backed insurtech start-up Go Digit General Insurance revealed today that its Initial Public Offering (IPO) is set to kick off on May 15, 2024, and conclude on May 17. Notably, while the IPO will see promoter Go Digit Infoworks and other existing shareholders divesting their stakes, power couple Virat Kohli and Anushka Sharma will maintain their investment in the venture.

Founded by Kamesh Goyal, Digit Insurance has made waves in the insurance industry with its customer-centric philosophy and digital-first solutions. The insurtech startup distinguishes itself by offering simplified insurance products, while leveraging technology and data analytics to streamline claims processing.

IPO Launch on May 15: All You Need To Know

The IPO encompasses a fresh issue of shares valued at Rs 1,125 crore alongside an offer for sale (OFS) of 54,766,392 shares, as outlined in the draft prospectus. Anchor investors will have the opportunity to place bids on May 14. The IPO approval, which arrived in March 2024 after navigating through compliance hurdles, marks a significant milestone for the Bengaluru-based firm.

With heavyweight backers such as Canadian billionaire Prem Watsa's Fairfax Group and A91 Partners, Go Digit has garnered attention for its innovative approach within the general insurance sector. The company's strategic backers and investors underscore its potential for growth and disruption within the industry.

Financial Performance and Future Plans

In the period ending December 2023, Go Digit witnessed a notable uptick in net earned premiums, reaching Rs 5,115 crore compared to Rs 3,767 crore in the corresponding period of the previous financial year. Moreover, the company reported a significant increase in profit after tax, signaling robust financial health.

Leading financial institutions such as ICICI Securities, Morgan Stanley India, Axis Capital, and others are serving as book-running lead managers for the IPO. Go Digit's offerings span across various insurance categories, including motor, health, travel, property, marine, and liability insurance.

Compliance Challenges and Regulatory Scrutiny

Despite its promising trajectory, Go Digit encountered hurdles related to compliance issues, leading to delays in securing IPO approval. Notably, the Insurance Regulatory and Development Authority of India (IRDAI) imposed a penalty of Rs 1 crore on the company for non-disclosure of changes in the conversion ratio of compulsorily convertible preference shares (CCPS).

As Go Digit General Insurance gears up for its IPO, all eyes are on the promising trajectory of this insurtech startup. With a blend of innovative solutions, strategic partnerships, and backing from notable investors like Indian cricketer Virat Kohli and Anushka Sharma, the share market is waiting to see the impact the startup makes.

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