Go Digit Makes A Tepid Debut On Dalal Street; IPO Lists At 5% Premium

Bengaluru-based startup, Go Digit made a tepid debut on the dalal streets as the Virat Kohil and Anushka Sharma invested insurer kicked-off on the exchanges with only 5 per cent premium.

The issue listed at Rs 286 with a premium of merely 5.14 per cent compared to its issue price of Rs 272. 

In its subscription phase, Go Digit IPO also received muted interest. The retail investors subscription stood at 4.27 times. While, the final subscription was recorded at 9.60 times, as per data by chittorgarh.

The Go Digit Rs 2,615.65 crore IPO consisted of a fresh issue of shares worth Rs 1,125 crore and an offer-for-sale (OFS) of Rs 1,489 crore with a price band of Rs 258 to Rs 278 per share. 

ICICI Securities, Morgan Stanley India, Axis Capital, HDFC Bank, IIFL Securities and Nuvama Wealth Management were the book running lead managers, while Link Intime India was the registrar to the issue. 

IPO Objectives

The company proposed to utilise net proceeds of Rs 1,125 crore to undertake its existing business activities. Additionally, the insurer expects that public listing will enhance its visibility and brand image among its existing and potential customers. The proceeds will also fulfill the general corporate purposes. 

Firm’s Financials

The firm registered revenue of Rs 39.19 crore in FY23, compared to Rs 293.64 crore loss in FY22. The firm’s profit after tax (PAT) increased to Rs 35.54 crore in FY23 compared to Rs 295 crore loss in FY22. Overall, revenue and PAT increased by 113.35 per cent and 112 per cent respectively. 

Virushka Investment

Star couple Virat Kohli and Anushka Sharma invested 2.5 crore in the Bengaluru-based insurance startup Go Digit.

In January 2020, Kohli purchased 266,667 shares of Go Digit at Rs 75 per share, amounting to an investment of approximately Rs 2 crore.

Promoter Go Digit Infoworks and other existing shareholders offloaded stakes in the IPO, while Kohli and Sharma retained their stakes.