May 18, 2024
By: Sourabh Jain
Credit: Go Digit
Pune-based Go Digit’s initial public offering (IPO) opens on Wednesday, May 15, and will close on Friday, May 17.
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Go Digit has fixed a price band of ₹258-₹272 per share for its public issue.
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Go Digit is a Pune-based digital full-stack insurance company founded in 2017 byKamesh Goyal, offering health, vehicle, marine, property and several other forms of insurance.
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Indian cricketer Virat Kohli purchased 2,66,667 shares of the company for ₹2 crore and actor and producer Anushka Sharma invested ₹50 lakh in the company by acquiring 66,667 shares. The duo is not divesting their stake in the current IPO.
Credit: BCCL
The company has raised ₹1,176.59 crores from anchor investors ahead of its IPO and informed the bourses that it allocated 4,32,57,009 equity shares at ₹272 per share on Tuesday, May 14, 2024, to anchor investors.
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Go Digit is looking to raise ₹2,614.65 crore from the current IPO. This includes a fresh issue of ₹1,125 crore and an offer for sale (OFS) component of ₹1,489.65 crore.
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Investors can bid for a minimum of 55 shares and in multiples of 55 shares thereafter.
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Established in 2016, Go Digit has emerged as a key player in the digital insurance segment. The company currently offers 74 active products in the general insurance category.
Credit: Go Digit
The company’s income was ₹39.19 crore in FY23, up from a loss of ₹293.64 crore in FY22. The company reported a net profit of ₹35.54 crore in FY23, up from a loss of ₹295.85 crore in FY22.
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Go Digit has faced the challenge of inconsistent profits over the last three years. The company has disclosed that it may not be able to maintain profitability in the future.
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Go Digit faces risks around regulatory actions and there are outstanding legal proceedings involving the company and its promoters and directors.
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