Go Digit raises Rs 1,176 Cr from anchor investors

Go Digit General Insurance has offered Rs 1,176 crore ($141 million) worth of shares to anchor investors as part of its initial public offering.

The board at Go Digit General Insurance has passed a resolution to offer 4,32,57,009 equity shares at an issue price of Rs 272 each to its anchor investors, its regulatory filing accessed from the Bombay Stock Exchange shows.

SBI, ICICI Prudential, Axis Mutual Fund, Mirae Asset, Tata Flexi, Motilal Oswal, PGIM India, and Edelweiss are some key anchor investors in Go Digit General Insurance’s IPO. Out of the total allocation of 4,32,57,009 equity shares to the anchor investors, 1,44, 96,570 equity shares were allocated to 11 domestic mutual funds through 23 schemes, the filing further added.

Go Digit General Insurance has initiated its public offering from today (15th May-17th May) 2024 with a price band of Rs 258-272 with a minimum bid quantity of 55 shares.

In the DRHP, the Gurugram-based firm had proposed to raise funds through the issue of equity shares of face value of Rs 1 each consisting of a fresh issue of equity shares aggregating up to Rs 1,125 crore and an offer for sale of up to 5,47,66,392 equity shares.

Last year, Digit refiled its draft IPO papers and later reduced the IPO size. The firm was recently fined by the Insurance Regulatory and Development Authority of India (IRDAI) over an inordinate delay in the filing the particulars of a joint venture agreement.  

Go Digit Infoworks services controls the largest holding in the firm with an 80.57% stake followed by TVS Shriram Growth which has a 3.43%. A91 Engineering, Faering Capital, and Peak XV command 3.23%, 2.06, and 1.00% respectively.

During the nine months (March 23- Dec 23) of FY24, Go Digit recorded a net revenue of Rs 5,631 crore with a profit of Rs 129 crore. During FY23, the firm posted a revenue of Rs 5,909 crore along with a profit of Rs 35.5 crore.

Last week, travel tech firm TBO Tek raised Rs 689 crore ($83 million) from its anchor investors.  On Wednesday, the firm listed at Rs 1,426 at the National Stock Exchange (NSE), a premium of 55% over the issue price of Rs 920.