Go Digit General Insurance, backed by Virat Kohli and Anushka Sharma, is gearing up to launch its initial public offering (IPO) next week, with subscriptions opening on May 15, 2024, and closing on May 17, 2024. Market observers note that ahead of the subscription opening, the Go Digit IPO is commanding a premium of ₹65 in the grey market, indicating potential listing prices around ₹65, marking a 23.9 percent increase over the IPO price of ₹337. According to investorgain.com, the Grey Market Premium (GMP) for the Go Digit IPO ranges from ₹50 to ₹70, reflecting investors’ willingness to pay more than the issue price. Notably, despite their involvement in the company, Virat Kohli and Anushka Sharma are not divesting any shares, as per the IPO documents.
The IPO aims to raise over ₹2,615 crore, with a price band set between ₹258 to ₹272 per share. It consists of a fresh issue of shares worth ₹1,125 crore and an offer for sale (OFS) of 54,766,392 shares. Investors can bid for up to 55 equity shares, with increments of 55 shares thereafter. The IPO allocation reserves 75 percent for qualified institutional buyers (QIBs), 15 percent for non-institutional investors, and 10 percent for retail investors.
The funds raised from the IPO will be directed towards general corporate purposes, enhancing solvency levels, and strengthening the company’s capital base. ICICI Securities, Axis Capital, Morgan Stanley India Company, HDFC Bank, IIFL Securities, and Nuvama Wealth Management are the appointed book-running lead managers for the issue.
