Go Digit General Insurance IPO Review - Issue Date, Price, GMP, Allotment, Lot Size, and Details

The Go Digit IPO is a book built issue aiming to raise Rs 2,614.65 crores. It comprises a fresh issue of 4.14 crore shares worth Rs 1,125.00 crores and an offer for sale of 5.48 crore shares totaling Rs 1,489.65 crores. Subscriptions open on May 15, 2024, and close on May 17, 2024, with allotments expected by May 21, 2024.

The listing on BSE and NSE is slated for May 23, 2024. Priced between ₹258 to ₹272 per share, the IPO requires a minimum lot size of 55 shares, with retail investors needing a minimum investment of ₹14,960. Institutional investors have specific lot size requirements, with sNII at 14 lots (770 shares) and bNII at 67 lots (3,685 shares).

ICICI Securities Limited, Morgan Stanley India Company Pvt Ltd, Axis Capital Limited, Hdfc Bank Limited, Iifl Securities Ltd, and Nuvama Wealth Management Limited serve as the book running lead managers, with Link Intime India Private Ltd as the registrar.

The Offer comprises the Fresh Issue and the Offer for Sale. The proceeds from the Offer for Sale will be received by the Selling Shareholders. Company proposes to utilize the funds form the fresh issue, as per the applicable IRDAI regulations, towards maintenance of our solvency ratio  by  investing  in  instruments  and  in  the  manner  prescribed  under  the IRDAI Actuarial  &  Allied Regulations, 2024

Go Digit General Insurance IPO Details

IPO Date May 15, 2024 to May 17, 2024
Listing Date May 23, 2024
Face Value ₹10 per share
Price ₹258 to ₹272 per share
Lot Size 55 Shares
Total Issue Size ₹2,614.65 Cr
Fresh Issue 41,360,294 shares (aggregating up to ₹1,125.00 Cr)
Offer for Sale 54,766,392 shares of ₹10 (aggregating up to ₹1,489.65 Cr)
Issue Type Book Built Issue IPO
Listing At NSE, BSE
Share holding pre issue 875,842,046
Share holding post issue 917,202,340

Go Digit General Insurance IPO Lot Size

Application Lots Shares Amount
Retail (Min) 1 55 ₹14,960
Retail (Max) 13 715 ₹194,480
S-HNI (Min) 14 770 ₹209,440
S-HNI (Max) 66 3,630 ₹987,360
B-HNI (Min) 67 3,685 ₹1,002,320

Go Digit General Insurance IPO Timeline (Tentative Schedule)

IPO Open Date Wednesday, May 15, 2024
IPO Close Date Friday, May 17, 2024
Basis of Allotment Tuesday, May 21, 2024
Initiation of Refunds Wednesday, May 22, 2024
Credit of Shares to Demat Wednesday, May 22, 2024
Listing Date Thursday, May 23, 2024
Cut-off time for UPI mandate confirmation 5 PM on May 17, 2024

Go Digit General Insurance IPO Reservation

Investor Category Shares Offered Reservation %
Anchor Investor Shares Offered 43,257,009 (45.00%) N/A
QIB Shares Offered 28,838,007 (30.00%) N/A
NII (HNI) Shares Offered 14,419,002 (15.00%)
bNII > ₹10L 9,612,668 (10.00%) 12,483
sNII < ₹10L 4,806,334 (5.00%) 6,241
Retail Shares Offered 9,612,668 (10.00%) 174,775
Total Shares Offered 96,126,686 (100%)

Go Digit General Insurance IPO Promoter Holding

Share Holding Pre Issue 83.30%
Share Holding Post Issue 79.54%

About Go Digit General Insurance Limited

We aim to make insurance simple. Through innovation and transparency, we believe in delivering a seamless customer experience journey in a significant financial product an individual would purchase in their lifetime. We offer motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance and other insurance products, which the customers can customize to meet his or her needs.

As at Dec’23, there were 43.26 million customers since the inception in 2017. (27.74 million customers acquired in motor insurance product, 14.97 million customers acquired in health insurance products (including personal accident & travel) and 0.55 million customers acquired in other insurance products)

In the nine months ended Dec’23 and FY23, the Company catered for approximately 82.5% (equating to ₹ 66.80 billion in the nine months ended December 31, 2023) and 82.1% (equating to ₹ 72.43 billion in Financial Year 2023), respectively, of the GWPs written by digital full stack insurance players (capturing approx. 4.3% of the overall non-life insurance market) which, include Acko and Navi, making go digit the largest digital full stack insurance player in India.

The company have launched 74 active products across all business lines. As of Dec’23 and FY23, they have market share of 6.0% and 5.4%, respectively, in the motor insurance segment one of the largest non-life insurance segment in India. This highlights the strong market acceptance of our core offering and the brand recognition.

India has one of the largest proportions of young working-age individuals, with people within the age group 15-64 reaching 970 million, representing approximately 68.0% of India’s total population as of 2023. Indian households are undergoing a notable evolution in their income and consumption patterns, with high-income households projected to grow the fastest between calendar year 2023 and calendar year 2028, at a CAGR of 7.2%. As upward social mobility occurs, standard of living improves, and households are likely to increase discretionary spending including financial products such as insurance.

The non-life insurance sector contributed around US$ 33.30 billion in GWP in FY23, showing a CAGR of 11.2% from FY18 - 23 and a CAGR of 13.6% from FY21-23. The overall market is estimated to grow at a CAGR of 15-16% from FY23-28, reaching the value of US$ 66-69 billion. It is estimated that as of the nine months ended Dec’23, the non-life insurance sector contributed around US$ 27.50 billion in GWP, from US$ 24.60 billion in GWP for the nine months ended Dec’22, growth rate of 11.5%.

The non-life insurance sector is dominated by the motor and health insurance segments. In non-life insurance business, according to IRDAI, India was ranked 14th worldwide with a share of 0.8% in the global non-life insurance market in Financial Year 2022. The Indian non-life insurance market was among the top five in the Asia-Pacific measured by GWP.

Risk Associated:

  • The company has track record of reporting losses and may not be able to maintain profitability in the future.
  • The company is required to meet the mandatory control level of solvency margin as prescribed under the Insurance Act, they could be subject to regulatory actions and could be forced to stop transacting any new business or change business strategy.
  • Catastrophic events, including natural disasters, terrorist attack or nuclear disaster, could materially increase our liabilities for claims by customers.
  • Motor Vehicle insurance holds 61% of GWP.
  • Company may require additional capital to grow in the future.
  • The company is exposed to significant market risk, including changes in interest rates or adverse movements in the equity markets in India that could impair the value of investment portfolio and have a material adverse effect on business, financial condition and results of operations.

Go Digit General Insurance Limited Financial Information (Restated Consolidated)

Amount in (Rs. Crore)

Period Ended 31st Dec 23 31st Mar 23 31st Mar 22 31st Mar 21
Reserve of Surplus 2391.97 2383.61 1975.07 973.14
Total Assets 3619.95 3346.75 2919.01 1874.80
Total Borrowings 200.00 0.00 0.00 0.00
Fixed Assets 161.00 162.00 148.50 102.41
Cash 122.34 279.30 146.52 159.89
Net Borrowing 77.66 -279.30 -146.52 -159.89
Revenue 130.83 39.19 -293.64 -118.55
EBITDA 142.92 50.69 -283.40 -113.79
PAT 129.02 35.55 -295.85 -122.76
EPS 1.48 0.41 -3.55 -1.50

Key Performance Indicator

KPI Values
EPS Pre IPO (Rs.) 0.41
EPS Post IPO (Rs.) 1.88
P/E Pre IPO 670.18
P/E Post IPO 145.03
ROE -
ROCE -
P/BV 7.29
Debt/Equity 0.06
RoNW 1.53%

Go Digit General Insurance Limited IPO Peer Comparison

Company Name EPS ROCE ROE P/E (x) P/Bv Debt/Equity RoNW (%)
Go Digit General Insurance Limited 0.41 - - 145.03 7.29 0.06 1.53%
New India Assurance Company Ltd 5.65 4.87% 4.07% 41.6 1.45 0 4.87%
Star Health & Allied Insurance Company Ltd 14.4 17.2% 13.9% 37.4 4.67 0.07 17.2%
ICICI Lombard General Insurance Company Ltd 38.9 22.5% 16.9% 42.5 6.71 0 22.5%
Go Digit General Insurance Limited Contact Details

GO DIGIT GENERAL INSURANCE LIMITED

1 to 6 Floor, Ananta One, Pride Hotel Lane, NarveerTanaji Wadi, City Survey No.1579, Shivajinagar, Pune 411005, Maharashtra, India

Telephone: +91 2067495400

Email: cs@godigit.com

Website: https://www.godigit.com

Go Digit General Insurance IPO Registrar and Lead Manager(s)

Link Intime India Private Limited

C-101, 1st Floor, 247 Park L.B.S.Marg Vikhroli West Mumbai 400 083, Maharashtra, India

Telephone: +91 8108114949

Email: godigit.ipo@linkintime.co.in

Website: www.linkintime.co.in

Go Digit General Insurance IPO Review

Go Digit General Insurance Ltd. (GDGIL) stands out as a top digital non-life insurance company, commanding 82.5% of the market in the nine months up to December 2023, totaling Rs. 66.80 billion. With consistent growth, it's a key player alongside Acko and Navi. Despite an average loss per share of Rs. (1.23) and a return on net worth of (6.32)% over the past three fiscal years, GDGIL has amassed Rs. 200 Cr. in debt. The IPO comes with a high price-to-earnings ratio despite ongoing losses, and no dividends have been declared. While the company shows promise, investors may hesitate due to its aggressive pricing and recent profitability turnaround from FY23. So investors can avoid the ipo.

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