Digit Insurance to open IPO on May 15 with reduced size

Go Digit General Insurance has announced that its initial public offering  (IPO) will open on May 15 and close on May 17. The company’s red herring prospectus (RHP) issue comprises a fresh issue of shares worth Rs 1,125 crore and an offer for sale (OFS) of 54,766,392 shares.

It’s worth noting that the company has reduced its IPO size. Earlier, the IPO comprised a fresh issue worth Rs 1,250 crore and an OFS component of 10.94 crore equity shares.

As per RHP, the promoters and existing shareholders of the company will offload their stakes while cricketer Virat Kohli and actress Anushka Sharma will not participate in the OFS.In 2020, Kohli bought 266,667 shares of the company for Rs 2 crore while Sharma invested Rs 50 lakh through a private placement.

ICICI Securities, Morgan Stanley India, Axis Capital, Edelweiss Financial Services, HDFC Bank, and IIFL Securities are the book-running lead managers for the IPO.

This comes shortly after the Rs 1 crore fine imposed by the Insurance Regulatory and Development Authority of India (IRDAI) over inordinate delay in the filing the particulars of a joint venture agreement. In November, the firm also received show cause notice and multiple advisories from the IRDAI on the same matter.

In March, Digit received SEBI’s approval to raise funds through IPO in March this year. Digit also had to refile its draft IPO papers in April last year after filing DRHP in July 2022.

Besides Digit, travel tech company TBO is ready to get listed on the bourses. Last month, Awfis also received SEBI’s approval for an IPO. FirstCry, Ola Electric, Unicommerce, and MobiKwik are still awaiting approval from the market regulator.