Digit IPO Subscribed 79% On Day 2, Retail Investors Show Highest Interest

Insurtech unicorn Go Digit General Insurance’s (Digit) public issue was subscribed 0.79X on the second day (May 16) of the bidding for its initial public offering (IPO), a slight improvement from the opening day’s 0.36X subscription. 

As per the BSE data, Digit’s IPO received bids for 4.17 Cr shares as against 5.28 Cr shares on offer. 

Retail individual investors (RIIs) continued to be the leading subscribers of the offer, placing bids for 2.44 Cr shares as against 96.12 Lakh shares reserved for them. This resulted in a 2.54X subscription for the portion reserved for them. 

However, interest from non-institutional investors (NIIs) and qualified institutional buyers (QIBs) remained muted on the second day as well. NIIs placed bids for 1.04 Cr shares against the 1.44 Cr shares reserved for them, leading to a 73% subscription. Meanwhile, the portion reserved for QIBs was subscribed 24%, receiving bids for 68.65 Lakh shares against the 2.88 Cr shares reserved for them. 

The startup plans to raise INR 2,614.6 Cr via the IPO at the upper end of the price band, which is set at INR 258-272. The 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 company plans to use the fresh proceeds from the IPO to maintain its solvency ratio in the financial year ending March 2025 (FY25).

Earlier this week, Digit raised INR 1,176.6 Cr from anchor investors by allocating 4.32 Cr shares. 

“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.

After the lull of 2023, the new-age startup IPO market is buzzing with activities this year. A number of startups, including Ola Electric, FirstCry, and Swiggy, are expected to go public this year. 

On Wednesday, B2B travel portal Travel Boutique Online or TBO Tek listed on the NSE at a premium of 55% to its issue price of INR 920. Meanwhile, Awfis today announced a price band of INR 364-383 for its IPO, which is opening on May 22.

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