Decoding IPO Bound Digit Insurance's Shareholding Pattern

Digit Insurance DRHP: Founder Kamesh Goyal Owns Over 45% Stake In The IPO-Bound Startup

SUMMARY

As per the DRHP, founder Kamesh Goyal indirectly owns 45.75% stake in Go Digit General Insurance Ltd

Prem Watsa’s FairFax Asia owns 37.8% stake in the Virat Kohli-backed unicorn insurtech startup

Digit Insurance will issue fresh shares worth INR 1,250 Cr during the IPO

Bengaluru-based insurtech startup Go Digit General Insurance Limited has filed its draft red herring prospectus (DRHP) with markets regulator Securities And Exchange Board of India (SEBI). The startup is planning to raise INR 1,250 Cr through a fresh issuance of shares.

Besides, the IPO offer will also consist of an offer-for-share component (OFS) in which one of the promoters – Go Digit Infoworks Services Limited – will offload up to 109 Mn equity shares, while few other shareholders will also sell a small number of shares.

The shares will be listed on the National Stock Exchange (NSE) and the BSE.

As per the shareholding pattern of Go Digit General Insurance, Go Digit Infoworks Services owns around 83.65% stake, or 72,95,65,220 equity shares, of the Virat Kohli-backed unicorn. The other major shareholders in the startup are:

TVS Shriram Growth Fund (3.56%)
A91 Emerging Fund (3.36%)
Faering Capital (3.36%)
Wellington Hadley Harbour AIV Master Investors (1.49%)
Sequoia Growth Investments (1.04%)

Meanwhile, Go Digit Infoworks has three shareholders – founder Goyal owns 14.96% stake in it, Oben Ventures has 39.79% stake, and FAL Corporation owns 45.25% stake in the company.

Oben Ventures LLP, which was originally incorporated as a private limited company, is also owned by Goyal who owns 99.99% stake in it. The remaining 0.01% stake is owned by Sameer Bakshi.

As per Inc42’s estimates, Digit Insurance founder Goyal owns about 45.75% stake in the IPO-bound unicorn. Apart from this, Prem Watsa’s FairFax Asia, which was an early investor in Digit Insurance, owns 37.8% stake in the startup through FAL Corp.

The startup’s net loss widened 141% in the financial year 2021-22 (FY22) to INR 295.8 Cr from INR 122.7 Cr in FY21. The loss stood at INR 175.2 Cr in FY20.

The operating loss from the insurance business stood at INR 375 Cr in FY22, a 102% jump from INR 185.4 Cr in FY21.

Digit Insurance will join the likes of PolicyBazaar and LIC who are engaged in the insurtech business and are listed on Indian stock exchanges.