Go Digit makes muted market debut, lists at 5% premium over IPO price

Go Digit General Insurance made a quiet debut on the stock exchanges on May 23, listing at Rs 286, which represents a premium of just 5.14 percent over the issue price of Rs 272. The listing gains were largely in line with grey market estimates, where shares were trading at a premium of 3 percent.

The Rs 2,614.65-crore public offer, in which renowned personalities like Virat Kohli and Anushka Sharma are investors, was subscribed 9.6 times. The offer received bids for 50.76 crore shares against 5.28 crore shares on offer. The public issue witnessed strong demand across investor categories, with the retail category being subscribed 4.27 times, non-institutional investors subscribing 7.24 times their allotted quota, and the portion for qualified institutional buyers (QIBs) being booked 12.56 times.

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The IPO was a mix of a fresh issue of 4.14 crore shares worth Rs 1,125 crore and an offer for sale of 5.48 crore shares worth Rs 1,489.65 crore.

A day before the issue opened on May 14, the insurance company backed by Fairfax secured approximately Rs 1,176 crore from anchor investors, including Fidelity, the Abu Dhabi Investment Authority (ADIA), and hedge fund Bay Pond Partners. Go Digit allocated 4.32 crore equity shares to 56 funds at the upper price band of Rs 272 each.

Go Digit plans to utilize the net proceeds to support its current business operations and fund the proposed activities identified for financing. Additionally, the company anticipates that listing its equity shares on the stock exchanges will enhance its visibility and brand image among existing as well as potential customers.