Digit IPO: Insurtech Raises INR 1,176 Cr From Anchor Investors

Insurance unicorn Go Digit has roped in two new non executives following board’s approval.

SUMMARY

The anchor round saw participation from Fidelity, Goldman Sachs, SBI, ICICI Prudential, Axis Mutual Fund, Mirrae, ADIA, among others

The insurtech unicorn, whose public issue will open on May 15, allocated 4.32 Cr shares to the anchor investors

Digit plans to raise INR 2,614.6 Cr through its IPO, which comprises a fresh issue of shares worth INR 1,125 Cr and an OFS element of 5.47 Cr shares

A day before the opening of its much-awaited initial public offering (IPO), insurtech major Go Digit General Insurance (Digit) on Tuesday (May 14) raised INR 1,176.6 Cr from its anchor investors.

The insurtech unicorn, whose public issue will open on May 15, allocated 4.32 Cr shares to its anchor investors at the upper end of its IPO price band of INR 258-272.

“The board of directors of the company at its meeting held on Tuesday (May 14, 2024) has finalised the allocation of 4.32 Cr equity shares to anchor investors at… price of INR 272 per equity share (including share premium of INR 262 per share)…,” the company said in a filing with the BSE.

Fidelity, Goldman Sachs, SBI, ICICI Prudential, Axis Mutual Fund, Mirrae, and Abu Dhabi Investment Authority (ADIA) were among the anchor investors.

Of the total,1.45 Cr (33.5%) shares worth INR 394.3 Cr were allocated to 11 domestic mutual funds through 23 schemes.

Digit plans to raise INR 2,614.6 Cr through the public listing at the upper end of the price band. The insurtech unicorn’s public issue comprises a fresh issue of shares worth INR 1,125 Cr and an offer for sale (OFS) element of 5.47 Cr shares.

The public issue will close on May 17. Digit plans to get listed on the BSE and the NSE on May 23.

Digit has earmarked 75% of the shares in the public issue for qualified institutional buyers (QIBs), while the remaining 15% and 10% are reserved for non-institutional institutional investors (NIIs) and retail investors, respectively.

Digit plans to use the fresh proceeds from the IPO to maintain its solvency ratio in the financial year ending March 2025 (FY25).

Founded in 2017 by Kamesh Goyal, Digit offers insurance policies across verticals, including health, motor vehicle, travel, and property. It is backed by the likes of Fairfax, Peak XV Partners, cricketer Virat Kohli, and actor Anushka Sharma.

It is pertinent to note that Digit’s IPO faced some delays in the past. While it first filed its draft red herring prospectus (DRHP) in 2022, the Securities and Exchange Board of India kept the IPO in ‘abeyance’ over certain concerns about the company’s employee stock appreciation plans”.

The size of the previous IPO was much bigger with a fresh issue worth INR 1,250 Cr and an OFS component of 10.94 Cr equity shares.

Eventually, Digit filed its IPO papers with the markets watchdog in March 2023 and received SEBI nod earlier this year.