Bengaluru-based Go Digit General Insurance Limited is one of the leading digital full-stack insurance companies founded in 2017 by insurance veteran Kamesh Goyal has fixed the price band at ₹258 to ₹272 per equity share for its initial public offer. The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Wednesday, May 15, 2024, for subscription and close on Friday, May 17, 2024. Investors can bid for a minimum of 55 Equity Shares and in multiples of 55 Equity Shares thereafter.
The Offer with a face value of ₹10 per Equity Share is a mix of fresh issue of Rs 1,125 crore and an offer for sale up to 54.77 million equity shares by Promoters and Other Selling Shareholders.
Go Digit has an end-to-end digital capability and a digital-first approach across customers’ insurance value chain. According to the RedSeer Report for the nine months ended December 31, 2023, and Financial Year 2023, the Company catered for approximately 82.5% (equating to ₹ 66.80 billion) and 82.1% (equating to ₹ 72.43 billion), respectively, of the GWPs written by the digital full-stack insurance players which include Acko and Navi, making it the largest digital full-stack insurance player in India. The Company offers motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and other insurance products, according to the needs of the customers. For the nine months ended December 31, 2023 motor insurance contributed 61.1% of the GWP.
As of December 31, 2023, there were 43.26 million customers or people availing insurance benefits under various policies issued by the company since the inception of its insurance operations in 2017.
According to the RedSeer Report, Go Digit’s GWP per employee for each of the nine months ended December 31, 2023, and Financial Year 2023 is highest compared to the average GWP per employee for non-life insurance companies in India demonstrating better operational efficiency compared to other general insurance companies in India.
Go Digit launched 74 active products across all business lines. As of the nine months ended December 31, 2023, and Financial Year 2023, it had a market share of approximately 6.0% and 5.4%, respectively, in the motor insurance segment one of the largest non-life insurance segment in India, according to the RedSeer Report.
The company has an established track record of delivering growth. GWP increased from ₹ 5,267.63 crore in Financial Year 2022 to ₹ 7,242.99 crore in Financial Year 2023, an increase of 37.5%, primarily due to an increase in GDPI from motor insurance, health insurance and personal accident insurance. The company has maintained an adequate capital position with a solvency ratio of 1.78 times and 1.60 times as of March 31, 2023, and December 31, 2023, respectively, compared to the IRDAI level minimum solvency ratio guidance of 1.50 times. The policies issued for fiscal 2023 stood at 10.63 million against 7.76 million in fiscal 2022. For the nine months ended 31 December, 2023, policies issued stood at 8.46 million. The Company’s AUM increased from Rs 9,393.87 crore in Financial Year 2022 to Rs 12,668.36 crore in Financial Year 2023, an increase of 34.9%, primarily due to an increase in GWP and additional capital infusion from share issuances. For the nine months ended December 31, 2023, AUM stood at 14,909.01 crore. The GDPI increased from ₹ 4,673.94 crore in the Financial Year 2022 to ₹ 6,160.01 crore in the Financial Year 2023, an increase of 31.8%. For the nine months ended December 31, 2023, GDPI stood at ₹ 5,970.53 crore.
The Offer is being made through the Book Building Process, wherein at least 75% of the Offer shall be allocated to Qualified Institutional Buyers, not more than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not more than 10% of the Offer shall be available for allocation to Retail Individual Bidders.
ICICI Securities Limited, Morgan Stanley India Company Private Limited, Axis Capital Limited, HDFC Bank Limited, IIFL Securities Limited, and Nuvama Wealth Management Limited and Link Intime India Private Limited is the registrar to the Offer. The Equity Shares are proposed to be listed on BSE and NSE.
Notes for Reference:
Issue Size of the IPO based on the upper and lower end of the price band
Fresh
OFS (54,766,392 equity shares)
Total
Lower Band (@Rs 258)
Rs 1,125 crore
Rs 1,412.97 crore
Rs 2,537.97 crore
Upper Band (@Rs 272)
Rs 1,125 crore
Rs 1,489.65 crore
Rs 2,614.65 crore
