SEBI bans Virat Kohli-backed Go Digit IPO

Markets regulator SEBI has kept cricketer Virat Kohli-backed Go Digit General Insurance IPO ‘postponed’. GoDigit had last month filed for draft prospectus for its initial public offering (IPO). IPO involves a new issue 1,250 crore and Offer for Sale (OFS) of over 10.94 crore equity shares by way of sale to shareholders. However, SEBI in its latest processing status of the draft offer documents did not give any further clarity on the IPO.

SEBI’s latest processing status of draft offer documents was released on September 16.

Under status report, SEBI entrusts ‘issuance of observations placed’ on Go Digit IPO, Further details were not disclosed.

generally, SEBI Issues comments on draft proposal documents filed within 30 days. A ‘deferred’ status does not mean that the IPO has been rejected. As per the latest guidelines issued in February 2020, SEBI is bound to continue with the comments for 30 days or 45 days, or 90 days or more, as the case may be.

For Go Digit’s IPO, the coordinating lead manager is ICICI Securities.

According to the draft prospectus filed on August 17, Go Digit is looking to launch an IPO that will have a fresh issue. 1,250 crore and Offer for Sale (OFS) of 109,445,561 equity shares. Under the OFS, the shareholders doing the sale are — Go Digit Infoworks Services, Nikita Mihir Vakharia with Mihir Atul Vakharia, Nikunj Hirendra Shah Sohag with Hirendra Shah, and Subramaniam Vasudevan jointly with Shanti Subramaniam.

The face value of equity shares to be offered under IPO is 10 per share.

ICICI Securities, Morgan Stanley, Axis Capital, Edelweiss Financial Services, HDFC Bank and IIFL Securities are the Book Running Lead Managers (BRLMs) of the IPO.

Go Digit plans to use the net proceeds of the IPO to grow its capital base and maintain solvency levels. However, proceeds from the Offer for Sale will go directly to the selling shareholders as mentioned above.

Apart from cricketer Virat Kohli, his wife Anushka Sharma and Canada-based Fairfax Group are also some of the investors in the company.

Go Digit aims to simplify insurance. Through innovation and transparency, the insurer believes in providing a seamless customer experience journey across a valued financial product that an individual will buy in their lifetime.

The company is one of the leading digital full-stack insurance companies offering motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance and other insurance products.

Go Digit has an established track record of delivering growth. Its GWP was 52.68 billion, 32.43 billion, and 22.52 billion in FY 2022, 2021 and 2020, representing a CAGR of 52.9% from FY 2020 to FY 2022.

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