Mumbai : Go Digit General Insurance Limited, backed by Canada-based Fairfax Group, has filed preliminary documents with markets regulator SEBI to raise funds through an initial public offering (IPO). As per the draft Red Herring Prospectus (DRHP), the IPO consists of an offer-for-sale (OFS) of equity shares worth Rs 1,250 crore and 10,94,45,561 equity shares by a promoter and existing shareholders.
Go Digit Infoworks Services Private Limited will sell 10,94,34,783 equity shares under the offer-for-sale. Also, the company can consider the pre-IPO placement of equity shares up to Rs 250 crore. The proceeds from the IPO will be used for the maintenance of general corporate objectives along with increasing the company’s capital base and improving its level of laundering capacity.
Go Digit offers motor, health, travel, property, marine, and other insurance products to meet the needs of customers. It is one of the first non-life insurance companies in India to operate completely on the cloud and has developed Application Programming Interface (API) systems with multiple partners. According to the draft paper, cricketer Virat Kohli and his wife Anushka Sharma are among the investors in Go Digit General Insurance. ICICI Securities, Morgan Stanley India Company, Axis Capital, Edelweiss Financial Services, HDFC Bank, and IIFL Securities are the book-running lead managers for the issue. The equity shares of the company will be listed on BSE and NSE.
what is IPO
IPO means Initial Public Offering. IPO is brought by a company. Through IPO, any company can enter the stock market and collect money from people in exchange for shares. Simply put, when a company puts its shares in the public market for the first time, it is called IPO.
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