Go Digit IPO Comprehensive Analysis: Key Risks, Issue Details, Financial Performance, and Company Overview

The Go Digit IPO has been making headlines in the financial world, with cricket superstar Virat Kohli’s backing adding to the excitement surrounding this highly anticipated public offering. Let’s take a closer look at the key aspects of the Go Digit General Insurance IPO.

Go Digit IPO Details

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Particulars Information
Subscription Dates May 15, 2024, to May 17, 2024
Price Band ₹258 to ₹272 per share
Total Size ₹2,614.65 crore (Fresh Issue: ₹1,125 crore, OFS: ₹1,489.65 crore)
Lot Size Minimum 55 equity shares or multiples thereof
Minimum Investment for Retail Investors ₹14,190

Company Overview

  • Go Digit General Insurance was established in December 2016 and has since made a name for itself in the insurance industry.
  • The company offers a wide range of insurance products, covering health, travel, and property insurance, among others.
  • Go Digit boasts a total of 74 active products across all its business lines, showcasing a strong market presence.

Financial Performance

  • Go Digit reported a net profit of ₹1,290 crore for the nine months ended FY24, marking a significant increase from the previous year.
  • Despite the impressive growth, the company reported an operating loss for the nine months ended December 2024, suggesting a focus on expansion and future profitability.

Objectives of the Issue

  • The net proceeds from the Go Digit IPO will be utilized to support ongoing business operations and fund proposed activities.
  • By leveraging the IPO proceeds, Go Digit aims to enhance its market position and visibility.
  • Listing on the stock exchanges is expected to boost Go Digit’s brand image and attract potential customers.

Lead Managers and Registrar

  • Book-Running Lead Managers:
    • ICICI Securities Limited
    • Morgan Stanley India Company Pvt Ltd
    • Axis Capital Limited
    • HDFC Bank Limited
    • IIFL Securities Ltd
    • Nuvama Wealth Management Limited
  • Registrar: Link Intime India Private Ltd

Key Risks

  • Go Digit has faced regulatory challenges in the past, raising concerns about future compliance and profitability.
  • The company’s revenue and profitability heavily depend on motor vehicle insurance products, posing a risk in case of regulatory changes or shifts in customer preferences.

The Go Digit IPO offers investors a chance to be a part of a dynamic and growing insurance company. With a strong financial performance and strategic objectives, Go Digit aims to leverage the IPO proceeds for sustainable growth and market expansion. However, investors should carefully consider the risks involved before making their investment decisions.