A fresh equity of Rs 1,250 crore will be issued by Go Digit Insurance, while the offer-for-sale will include will be there worth Rs 3,750 crore, sources told CNBCTV18. The firm is backed by Canada’s Fairfax, Indian cricketer Virat Kohli and actor Anushka Sharma.
Go Digit Insurance — backed by Canada’s Fairfax, Indian cricketer Virat Kohli and actor Anushka Sharma
— has filed its draft red herring prospectus (DRHP) to raise around Rs 5,000 crore through an initial public offering (IPO).
The IPO will have to have both fresh issuances of equity and offers for sale (OFS). Companies use OFS to meet the needs of additional capital, In OFS, a buyer has to provide a bid to acquire the shares. The company sets a ‘floor price.’ Buyers cannot bid at a price below the floor price.
A fresh equity of Rs 1,250 crore will be issued by Go Digit Insurance, while the offer-for-sale will include will be there worth Rs 3,750 crore, sources told CNBCTV18.
The company will issue 15 percent equity via its IPO. The value of the Go Digit Insurance IPO is likely to be Rs 30,000-35,000 crore.
The insurance company had, on July 18, announced the launch of ‘Pay as you Drive’ (PAYD) add-on feature for motor insurance Own Damage (OD) policies. It will become the country's first insurers to introduce the feature.
Go Digit Insurance's net loss widened to Rs 295 crore in the financial year 2022 as compared to Rs 122 in FY21. Its total income stood at Rs 3,841 crore for FY22. The premium income in FY22 grew 62 percent from FY21.
The Bengaluru-based firm provides health, travel, property, marine, liability, and other general insurance. The company has a valuation of over $1 billion. It is one of the first non-life insurers in India to be fully cloud-based and integrates APIs.
(Edited by : Nishtha Pandey)