SEBI, India’s market regulator has granted approval to Digit Insurance for its IPO launch, following delays due to compliance issues, as revealed in a letter obtained by Reuters.
Digit, previously valued at $3.5 billion, had initially filed for an IPO in August 2022. However, the Securities and Exchange Board of India (SEBI) halted the process twice over concerns regarding the legality of certain share issuances.
After addressing these concerns, Digit, a player in the general insurance sector backed by investors such as the Fairfax Group and A91 Partners, resubmitted its IPO papers to SEBI last March, which has now been approved.
The letter, sent on Friday to Digit and its IPO advisers, indicates that the proposed issue can commence within a 12-month period. While the letter does not specify the earlier compliance issues or SEBI’s stance, sources familiar with the matter suggest that the regulator’s approval signifies satisfaction with the IPO application. Digit declined to comment, and SEBI has yet to respond to requests for comment.
Digit now plans to market its IPO to potential investors over the next month, aiming for a listing by May, according to a person with direct knowledge of the situation.
In addition to an offer for the sale of 109.4 million shares, Digit intends to raise 12.5 billion rupees ($151 million) through its listing, as outlined in its prospectus.
Digit’s IPO plans coincide with a surge in India’s stock markets and public listings, with bankers forecasting 2024 to be one of the country’s most significant years for IPOs, as previously reported by Reuters.
