Go Digit IPO Day 2: Go Digit General Insurance Limited initiated its inaugural public offering (IPO) on Wednesday, scheduled to conclude by Friday. The insurer has established the Go Digit IPO price range at ₹258 to ₹272 per equity share, receiving backing from Indian cricket icon Virat Kohli and his spouse, acclaimed Bollywood actress Anushka Sharma. The public offering, valued at ₹1489.65 crore, has garnered a subscription of 0.36 times as per the Go Digit IPO subscription status after the first day of bidding. Additionally, the gray market is witnessing an uptick in the book build issue, with market observers noting that shares of Go Digit General Insurance Limited are currently commanding a premium of ₹46.
Go Digit IPO GMP today
Today, the Go Digit IPO’s grey market premium (GMP) stands at ₹46, marking a ₹1 increase compared to Wednesday’s GMP of ₹45. Analysts noted that despite the Indian stock market ending a three-day winning streak, the Go Digit IPO’s GMP has remained stable, indicating positive sentiment. They anticipate an upward trend in grey market sentiment as the secondary market gains momentum.
Status of Go Digit IPO subscription
By 12:33 PM on the second day of bidding, the book build issue had been subscribed 0.51 times. The retail portion saw a subscription of 2.07 times, while the NII segment was subscribed 0.49 times.
Go Digit IPO: Apply or Not?
Foreseeing a promising debut of Go Digit shares on Dalal Street, VLA Ambala, Founder of Stock Market Today, commented, “Go Digit General Insurance Limited has showcased impressive growth, A 112.01% rise and a 113.35% surge in revenue in PAT from March 31, 2022, to March 31, 2023. The company’s assets also expanded from Rs.1,874.80 cr in 2021 to Rs.3,346.75 cr in 2023, marking its first-time net profit of Rs.35.54 cr. It seems to be in good financial condition with reserves and a surplus of Rs. 2,391.97 crore and total borrowings of Rs. 200 crores. However, its IPO appears to be priced aggressively based on its FY24 annualized earnings. According to analysis, its listing might witness subdued performance or a moderate premium of 5-15%.” -Go Digit IPO Day 2
In his assessment of the Go Digit IPO, Rajesh Sinha, Senior Research Analyst at Bonanza Portfolio, remarked, “Go Digit consistently introduces innovative products and value propositions for its customers, which we view as a key differentiator from its competitors. The company also aims to broaden and diversify its distribution network to increase customer outreach and attract new business opportunities. Its sophisticated technology enables efficient underwriting processes, leveraging predictive models to support customers, partners, and operational workflows.”
Go Digit IPO review
Go Digit is an insurance provider offering an extensive array of products such as motor, health, travel, property, marine, and liability insurance, among others, all customizable to suit individual customer requirements. The company has undergone substantial business expansion, enhanced its underwriting capabilities, and maintained consistent investment returns. As of Q3FY24, its distribution network extends across 24 states and UTs in India, with partnerships established with around 61,972 Key Distribution Partners, comprising 58,532 POSPs and individual agents, corporate agents, brokers, and other entities.
In 9MFY24, Go Digit’s Gross Written Premium (GWP) stood at Rs.66.8 billion, marking a 26.3% increase from 9MFY23. Notably, its GWP demonstrated a compound annual growth rate (CAGR) of 49.4% during FY21-23.
Virat Kohli and Anushka-backed IPO
As per the Red Herring Prospectus (RHP) submitted by Go Digit General Insurance Limited, the celebrity couple, commonly referred to as ‘Virushka’, has made substantial investments in the company. Indian cricketer Virat Kohli holds 2,66,667 Go Digit shares, while actor Anushka Sharma possesses 66,667 shares. Both celebrities obtained these shares at a price of ₹75 per share.
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