Virat Kohli-backed Digit Insurance files for IPO

Go Digit Insurance IPO involving a new issue of shares of value 1,250 crore, while existing shareholders will sell 109.4 million shares, as per the draft red-herring prospectus (DRHP). The company said it could sell around 250 crore shares in pre-IPO placement, hence the share sale in the issue will be less if there is a pre-IPO.

Go Digit Infoworks Services Pvt Ltd, Nikita Mihir Vakharia, along with Mihir Atul Vakharia, Nikunj Hirendra Shah, Sohag Hirendra Shah and Subramaniam Vasudevan, along with Shanti Subramaniam are jointly promoters and other selling shareholders.

The company proposes to use the net proceeds to strengthen its balance sheet and maintain cash reserves, which the regulator requires insurers.

Founded in 2017, Digit is trying to capitalize on India’s low-penetration general insurance market along with users’ need for better customer experience like easy claim settlement. Digit’s founder Kamesh Goyal is an insurance industry veteran who worked with Germany’s Allianz and led its Indian joint venture. Indian cricket star Virat Kohli is an investor and its brand ambassador.

The promoters of the company are Kamesh Goyal, Go Digit Infoworks Services Pvt Ltd, Oben Ventures LLP and FAL Corporation, which are part of Fairfax Holdings.

points insurancenet loss of 295 crore in FY22 as compared to 122 more in FY 2011 175 crore in FY20. its total income increased 3,841 crore in FY22 from 2,251 crore in FY 2021.

Companies in this sector need to be at least five years old before the insurance regulator goes public, which Digit will complete by September. Digit plans to raise funds by offering new shares with its largest shareholder, Fairfax, which holds about 30%, according to a Reuters report.

Morgan Stanley and local investment banks ICICI Securities, Axis Capital, Edelweiss Financial Services, HDFC Bank and IIFL Securities are managing the IPO.

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