Go Digit General Insurance IPO Review –
Go Digit General Insurance Limited is coming up with its IPO which is set to open from 15th May 2024 to 17th May 2024. This article will analyze the financials , strengths and weaknesses of the Go Digit General Insurance IPO. Keep scrolling below to read more!
Go Digit General Insurance Overview –
Go Digit General Insurance Limited a digital full stack Insurance provider company, was established in 2016, which offers motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance and other insurance products, which customers can customize to meet their needs..
Go Digit General Insurance Limited offers a range of products like :
- Motor Insurance
- Health Insurance
- Property Insurance
- Travel Insurance
- Liability Insurance and other Insurance products
As of December 31, 2023, company has distribution centers in 24 states and union territories in India and about 61,972 partners, including 58,532 POSPs and other agents.
Go Digit General Insurance Limited IPO Synopsis-
Go Digit General Insurance Limited IPO is set to be open from 15th May 2024 to 17th May 2024, offering fresh issue of 41,360,294 shares
aggregating to Rs 1,125.00 crores and and Offer-for-Sale (OFS) of 54,766,392 shares aggregating to Rs 1,489.65 crores. This NSE,BSE IPO follows a Book Built Issue IPO.
The total issue size of this IPO amounts to Rs.2614.65 Crores. The company has allocated shares 10% to retail investors, 75% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 15th May 2024 |
| Closing Date | 17th May 2024 |
| Lot Size | 55 Shares |
| Face Value | Rs. 10 |
| IPO Size | Rs. 2614.65 Cr |
| Fresh Issue | Rs. 1125 Cr |
| IPO Price Range | Rs. 258 – 272 |
| Min. Investment | Rs. 14,960 |
| Offer for Sale (OFS) | Rs. 1489.65 Cr |
| Basis of Allotment | 21st May 2024 |
| Refunds | 22nd May 2024 |
| Listing Date | 23rd May 2024 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Book Running Lead Managers –
- ICICI Securities Limited
- Morgan Stanley India Company Pvt Ltd
- Axis Capital limited
- HDFC Bank Limited
- IIFL Securities Limited
- Nuvama Wealth Management Limited
Registrar to the offer –
The registrar for the IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
The Objective Of The Issue –
- To undertake its existing business activities; and
- To undertake the activities proposed to be funded from the Net Proceeds. Further, the Company expects to receive the benefits of listing the Equity Shares on the Stock Exchanges, which, the company believes, will enhance the visibility and its brand image among its existing and potential customers.
Financial Status –
| Particulars(in Rs. Crores) | FY 23 | FY 22 | FY 21 |
|---|---|---|---|
| Revenue From Operations | 7242.98 | 5267.63 | 3243.38 |
| EBIDTA | 50.68 | -283.40 | -113.79 |
| PAT | 35.54 | -295.85 | -122.76 |
| Total Assets | 13489.55 | 10047.72 | 6004.11 |
| Total Borrowings | 11137.24 | 8154.50 | 4827.42 |
Peers of Go Digit General Insurance –
- New India Assurance Company Limited
- Star Health and Allied Insurance Company Limited
- ICICI Lombard General Insurance Company Ltd
IPOs Strengths –
- Company offers simple and tailored customer experience.
- Company has strong focus on empowering their distribution partners.
- Company has developed predictive underwriting models.
- Company has built a technology enabled platform
- Company has experience management team
IPOs Weakness –
- Company had reported losses in the past.
- Company has to meet the mandatory level of solvency margin as prescribed under the insurance act and is subject to regulatory actions.
- Subject to extensive supervision and regulatory inspections
- Majority of revenue comes from motor vehicle insurance.
- Faces high risk to underwriting
- High working capital requirements.
- Company has reported negative cash flows in the past.
Conclusion –
Go Digit General Insurance Limited’s revenue increased by 113.35% and profit after tax (PAT) rose by 112.01% between the financial year ending with March 31, 2023 and March 31, 2022. Based on annualized earnings, the issue appears aggressively priced. The insurance sector is difficult to understand by a layman and hence one has to keep an eye on its business growth and future prospects. Well-informed investors may park moderate funds for the long term rewards.
However, if any IPO is oversubscribed and GMP sustained is more than 50% then the IPO is considered good for investment. This IPO is going to open from Wednesday, 15th May 2024. After the opening of the IPO, its GMP and demand will be known.
Also, investors should conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision. Experienced investors can apply for the IPO after carefully evaluating all factors to maximize their gains.
