Go Digit IPO day 2: GMP, subscription status, price to review. Apply or not?

Go Digit IPO Day 2: The initial public offering (IPO) of Go Digit General Insurance Limited opened on Wednesday, and it will remain open till Friday. The insurance company, backed by the Indian cricketer Virat Kohli and his wife and a leading Bollywood actor, Anushka Sharma, has fixed the Go Digit IPO price band at 258 to 272 per equity share. As per the Go Digit IPO subscription status after day one of bidding, the public issue worth 1489.65 crore has been booked 0.36 times. The book build issue is gaining strength in the grey market as well. As per the market observers, Go Digit General Insurance Limited shares are available at a premium of 46 in the grey market today.

Go Digit IPO GMP today

As said, Go Digit IPO GMP (grey market premium) today is 46, which is Re 1 higher than Wednesday’s GMP of 45. Market observers said that Go Digit IPO GMP has remained steady despite the Indian stock market snapping a three-day winning streak, which is a good sign. They expected further upside in the grey market sentiments once the secondary market gains momentum.

Go Digit IPO subscription status

After day one of bidding, the book-build issue has been booked 0.36 times. According to the data available on the stock exchanges, the issue received bids of 1,88,97,835 shares against the offered 5,28,69,677 equity shares at a price band of 258 to 272. The Retail Portion and Non-Institutional Investors Portion were subscribed 1.44 times and 0.34 times, respectively, whereas the Qualified Institutional Buyer Portion is still to see traction.

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Infographic: Courtesy mintgenie.

Go Digit IPO: Apply or not?

Anticipating a promising debut of Go Digit shares on Dalal Street, VLA Ambala, Founder of Stock Market Today, remarked, “Go Digit General Insurance Limited has demonstrated remarkable growth, with a 113.35% surge in revenue and a 112.01% rise in PAT between March 31, 2022, and March 31, 2023. The company’s assets also expanded from Rs.1,874.80 crore in 2021 to Rs.3,346.75 crore in 2023 and reported a net profit of Rs.35.54 crore for the first time. With reserves and surplus amounting to Rs.2,391.97 crore and total borrowings of Rs.200 crore, it appears to be in a sound financial position. However, its IPO seems to be priced aggressively based on its FY24 annualized earnings. According to analysis, its listing might be subdued or at a moderate 5-15% premium.”

Commenting on Go Digit IPO, Rajesh Sinha, Senior Research Analyst at Bonanza Portfolio, stated, “Go Digit is consistently introducing innovative products and value propositions for its customers, which we believe is a crucial differentiator from its peers. It also has plans to expand and diversify its distribution network to enhance customer reach and generate new business. Its advanced technology empowers it to underwrite efficiently. It also leverages advanced technology to drive predictive underwriting models and support customers, partners, and processes.”

Go Digit IPO review

Go Digit is an insurance provider that offers a wide range of products, including motor, health, travel, property, marine, and liability insurance, among others. These products can be tailored to meet individual customer needs. Go Digit has significantly expanded its business, improved its underwriting performance, and consistently generated investment returns. As of Q3FY24, it has a distribution network spanning 24 states and UTs in India and had partnerships with approximately 61,972 Key Distribution Partners, including 58,532 POSPs and individual agents, corporate agents, brokers, and others.

Go Digit’s Gross written premium (GWP) was Rs.66.8bn for 9MFY24, which grew by 26.3% from 9MFY23. Its GWP grew at a CAGR of 49.4% during FY21-23.

According to the RHP (Red Herring Prospectus) filed by Go Digit General Insurance Limited, the celebrity duo popularly called ‘Virushka’ has made significant investments in this company. Indian cricketer Virat Kohli holds 2,66,667 Go Digit shares, while actor Anushka Sharma owns 66,667 shares. Both celebrities acquired these shares at a price of 75 each.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 16 May 2024, 09:00 AM IST

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