Go Digit share price jumps 9% after muted listing
Following its listing on Thursday with a modest premium of 3.35% at Rs 281 over its issue price of Rs 272, shares of Go Digit General Insurance continued to rally, surging another 9% to reach the day's high of Rs 305.85.
After at a small of 3.35% on in Thursday's trade at Rs 281 over its issue price of Rs 272, shares of rallied another 9% to the day's high of Rs 305.85.Despite a positive debut, this performance fell short of pre-listing expectations and the grey market premium (GMP) which suggested a potential gain of around 10% as the company's shares traded at a premium of Rs 25 in the unlisted market.
“Go Digit's position as the fastest-growing private non-life insurer by in India positions it for continued success in the dynamic market. The company's advanced technology platform and focus on innovation bode well for its future,” said Shivani Nyati, Head of Wealth at .
Go Digit's moderate listing necessitates a balanced approach from investors. While the company possesses strong long-term potential, careful consideration of the valuation and competitive landscape is crucial. Investors may hold their position by keeping a stop loss at the issue price, Nyati added.
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In 2020, cricketer bought 2.66 lakh shares of the company for Rs 2 crore while actress wife invested Rs 50 lakh through a private placement.
The Virushka-backed IPO was a mix of fresh issue of Rs 1,125 crore and an offer for sale of up to 54.77 million shares which was oversubscribed by 10 times as a result of strong demand from retail as well as institutional players.
The insurance firm plans to utilise the net proceeds towards augmenting its capital base and maintaining the solvency levels.
, , , Edelweiss Financial Services, HDFC Bank, and IIFL Securities acted as the book-running lead managers for the IPO.
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Source: Stocks-Markets-Economic Times
