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Go Digit General Insurance Limited IPO

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Go Digit is one of the leading general insurance companies backed by the Canadian-based Fairfax. It provides health insurance, vehicle insurance, property insurance, travel insurance and other insurance products digitally.

The company first filed its Draft Red Herring Prospectus to SEBI in 2022. However, SEBI returned this document on January 30 after suggesting certain changes. Later in April 2023, Go Digit General Insurance Limited refiled another DRHP to SEBI after making the required amendments.

Let's take a look at some of the important points about Go Digit General Insurance Limited's IPO from the DRHP.

About the Company

Go Digit General Insurance Limited is India's one of the most prominent digital full-stack insurance companies.

As full-stack insurers, Go Digit General Insurance Limited is fully licensed and works under the regulations of IRDAI (Insurance Regulatory and Development Authority). The company’s offerings include travel insurance, car insurance, bike/ 2-wheeler insurance, truck insurance, auto-rickshaw insurance, health insurance, marine insurance, property insurance and many more. It also performs activities like sourcing, underwriting and servicing in-house.

The Go Digit team strives to leverage technology to introduce an innovative approach to design, supply, and user experience for insurance products. It aims to make access to insurance products so easy that even a child can understand its significance.

By doing so, the insurer focuses on enhancing literacy about the significance of insurance for an individual. This allows it to achieve the bigger goal which is to gain the trust of its target audience and build a strong and long-term relationship.

Go Digit General Insurance Limited aims to change insurance products and processes by following a three-step rule. These steps include deeply customising and empowering with simplicity, data foundation for future reference and utilising machines as force multipliers.

Talking about the company’s financial performance, the total income of Go Digit General Insurance Limited grew from Rs. 14,192.06 million in FY 2020 to Rs. 38,409.65 million in FY 2022.

IPO Details and Objectives

Go Digit General Insurance Limited recently filed another DRHP with SEBI after making certain changes. However, the proposed IPO issue size remains unchanged and the approximate worth of the new issue of equity shares is Rs. 1250 crore.

The company plans to use the net proceeds that it earns from this IPO issue to increase its liquidity and maintain its solvency ratio. Interested investors can explore our website and create a Demat and trading account to invest in Go Digit General Insurance Limited IPO.

Go Digit General Insurance Limited IPO Details

As stated earlier, Go Digit General Insurance Limited is planning to launch an IPO of an approximate worth of Rs. 12.5 billion. According to its DRHP, the company also plans to issue 10,94,45,561 equity shares as an Offer for Sale from its promoters.

Some of the promoters offering their shares at the OFS are Go Digit Infoworks Services Private Limited, Kamesh Goyal, Kanika Gupta, FAL Corporation and Oben Ventures. The company may also consider a pre-IPO placement of up to Rs. 2.5 crore, which would reduce the size of its fresh issue.

The company is yet to announce their IPO opening and closing dates along with other details like lot size, price band and anchor investor offer price. If the company plans to offer any minimum bid price or an employee discount, it will publish the details a minimum of four weeks before the issue date.

Strengths

Before making an IPO investment, you must be aware of the strengths and weaknesses of a company. For Go Digit General Insurance Limited, the notable strengths are:

  • The company aims to offer a high-quality digital customer experience with simple and convenient documentation processes along with transparent and relevant coverage.
  • Go Digit General Insurance Limited also concentrates on empowering its distribution partners with point-of-sale solutions, better accessibility, self-service and customer integration.
  • This company has a strong predictive underwriting model with the ability to acquire and identify profitable businesses and a vast set of decoded variables.
  • Despite being a small organisation, the company is run by a skilled and excellent management team. The company hires industry experts with comprehensive and technical knowledge about the insurance sector.

Risks Involved

Besides the above strengths, the following risks are also associated with the business of Go Digit General Insurance Limited.

  • Go Digit has a track record of reporting losses despite its nine-month track record of consecutive profits till December 2022. Its limited operating history makes it tough for the company to evaluate its future business prospects.

     

  • The inability to meet certain IRDAI requirements can lead the company to face regulatory actions. This can lead Go Digit General Insurance Limited to pause any new transaction or change its business strategy.

     

Conclusion

Here are the important details you need to know about the Go Digit General Insurance Limited IPO from its DRHP. These details will help you assess whether the company's objectives with its upcoming IPO align with your investment goals. If yes, you are good to go with the investment.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

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