Virat Kohli-backed Go Digit debuts at 5% premium over IPO price

The issue, which was a mix of fresh issue of Rs 1,125 crore and an offer for sale of up to 54.77 million shares, was booked nearly 10 times at close on strong interest from retail and institutional buyers.

The insurance firm plans to utilise the net proceeds towards augmenting its capital base and maintaining the solvency levels.

Ahead of the issue, the firm raised about Rs 1,176 crore in the anchor round, where , , and Custody Bank of Japan were among investors.

In 2020, cricketer bought 2.66 lakh shares of the company for Rs 2 crore while actress wife Anushka Sharma invested Rs 50 lakh through a private placement.

Ahead of the IPO, the promoter group including Canada-based Fairfax, Kamesh Goyal, Go Digit Infoworks and Oben Ventures, owned an 83.31% stake in the company.

Go Digit is a leading digital full-stack insurer and the fastest-growing private by GWP in India. They offer a simplified and customised customer experience, with a strong focus on empowering their distribution partners.

In the nine-month period ending December 2023, Go Digit's net earned premium rose to Rs 5,115 crore vs Rs 3,767 crore in the corresponding period of the previous financial year. It reported a profit after tax of Rs 129 crore in the 9-month period vs Rs 10 crore in the first 9 months of FY23.

The PE ratio, based on the diluted EPS for 2023, at the upper range of the price band is 680x as compared to the average industry peer group of 46.13x.

ICICI Securities, Morgan Stanley India, Axis Capital, Edelweiss Financial Services, HDFC Bank, and IIFL Securities acted as the for the IPO.