Go Digit Stock Launch: Reserved Response from Market
23rd May 2024, marked the debut of Go Digit on the stock market, a debut that didn’t quite set the market ablaze. As the bell rang, Go Digit’s shares hit the trading floor with a moderate response from investors. On the National Stock Exchange (NSE), the initial share price stood at ₹286, a modest 5.15% jump from the issue price of ₹272. Similarly, on the Bombay Stock Exchange (BSE), shares opened at ₹281.10 each, reflecting a 3.35% increase over the issue price.
During the subscription period, Go Digit’s IPO garnered considerable interest, with the subscription status reaching 9.60 times by the closing day. Notably, the segment earmarked for qualified institutional buyers (QIBs) saw an oversubscription of 12.56 times, while non-institutional investors subscribed 7.24 times. Retail individual investors (RIIs) also showed strong interest, subscribing 4.27 times.
The IPO, which ran from May 15 to May 17, saw significant activity, with 79% of subscriptions occurring on the second day and 36% on the first day, according to BSE data.
In terms of allocation, 10% of the issue size was reserved for retail investors, 15% for non-institutional investors, and the majority, approximately 75%, for qualified institutional investors.
According to the Red Herring Prospectus (RHP), Go Digit is positioned as a leading digital full-stack non-life insurance provider, emphasizing its innovative approach to designing, distributing, and enhancing customer experience through technology.
Key figures associated with the company include Kamesh Goyal, GoDigit Infoworks Services Private Limited, Oben Ventures LLP, and FAL Corporation. Notably, in 2020, cricket icon Virat Kohli and his wife, actress Anushka Sharma, made significant investments in the company.
Financially, Go Digit General Insurance Limited has shown robust growth, with revenue and profit after tax (PAT) soaring by 113.35% and 112.01%, respectively, between March 31, 2022, and March 31, 2023. The IPO comprises an offer-for-sale (OFS) of 54,766,392 equity shares by promoters and other selling shareholders, alongside a fresh issue of ₹1,125 crore.
Proceeds from the IPO will support the company’s commercial operations and funded projects, with expectations of enhanced brand visibility post-listing. ICICI Securities Limited, Axis Capital Limited, Edelweiss Financial Services Ltd, HDFC Bank Limited, and IIFL Securities Ltd are the book running lead managers, with Link Intime India Private Ltd serving as the issue registrar.
The grey market premium (GMP) for Go Digit IPO stands at +8 today, indicating a premium of ₹8 over the issue price. Market analysts predict the shares to debut at ₹280 per share, a 2.94% increase from the IPO price.
In essence, the grey market premium reflects investor willingness to pay above the issue price, suggesting positive market sentiment towards Go Digit’s prospects.
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