SUMMARY
Earlier this month, SEBI in its ‘processing status of draft offer documents’ put an ‘abeyance’ status on Go Digit’s IPO
The markets regulator had reportedly raised concerns over Go Digit issuing shares to over 200 individuals in the past financial year
Go Digit reportedly told SEBI that it did not violate any regulations, following which the markets regulator decided to restart the review
The Securities and Exchange Board of India (SEBI) will reportedly restart the review of the $440 Mn initial public offering (IPO) of Go Digit General Insurance, days after it put it in ‘abeyance’.
Sources aware of the matter told Reuters that the markets regulator’s decision to review came after the startup resolved certain compliance issues that led to SEBI putting the IPO process on hold.
SEBI in its ‘processing status of draft offer documents’ had put an ‘abeyance’ status on Go Digit’s IPO earlier this month, but did not provide any reason for doing so.
SEBI had reportedly raised concerns over Go Digit issuing shares to over 200 individuals in the past financial year, which is not allowed as per the regulations.
However, one of the sources aware of the latest development told the news agency that the insurtech startup provided an explanation to the regulator on the issuance of shares, saying that it did not violate the regulations.
SEBI agreed with Go Digit’s reasoning and has decided to restart the review process, removing the ‘abeyance’ status from Monday.
Inc42 sought Digit Insurance’s response on the matter, but the startup declined to comment on it.
Founded in 2017 by Kamesh Goyal, Go Digit offers insurance policies in different verticals such as health, property, travel, motor vehicle, among others. The startup claims to have served over 25 Mn customers as of March 31, 2022.
The Sequoia-backed startup filed its draft IPO papers on August 17 this year. As per the draft papers, the IPO will comprise a fresh issue of shares worth INR 1,250 Cr and an offer for sale (OFS) of 10.94 Cr equity shares from existing shareholders.
Earlier this week, Axis Bank said it would invest INR 49.90 Cr to INR 69.90 Cr to acquire up to 9.94% stake in Go Digit’s life insurance business, Go Digit Life Insurance. Last month, HDFC Bank also announced an investment of the same amount in the life insurance business.
