Go Digit garners Rs 1,176 cr from anchor investors; IPO opens for subscription

New Delhi: Go Digit General Insurance Ltd, a firm backed by Canada-based Fairfax Group, has raised a little over Rs 1,176 crore from anchor investors.

The company has allocated 4.32 crore equity shares to 56 funds at Rs 272 apiece, which is the upper end of the price band, according to a circular uploaded late on Tuesday.

At this price, the company has mobilised Rs 1,176.59 crore from these funds.

Foreign and domestic Institutions that participated in the anchor round were -- Fidelity Investment Trust, Bay Pond Partners L.P., Goldman Sachs, Abu Dhabi Investment Authority (ADIA), Schroder International, East Spring Investments India, Custody Bank of Japan and Morgan Stanley Asia (Singapore) PTE ODI.

In addition, SBI Mutual Fund, ICICI Prudential Mutual Fund, Axis Mutual Fund, Mirae Asset Mutual Fund, Ashoka WhiteOak Mutual Fund, HDFC Life Insurance, ITPL Invesco India Mutual Fund, Tata Mutual Fund too were allocated shares.

The company's Rs 2,615-crore initial share-sale was opened for subscription from Wednesday and will conclude on Friday. The price band has been fixed at Rs 258 to Rs 272 per share for the IPO.

Go Digit's proposed IPO comprises fresh issuance of equity shares worth Rs 1,125 crore and an Offer-for-Sale (OFS) of 5.47 crore equity shares by a promoter Go Digit Infoworks Services and existing shareholders worth Rs 1,490 crore. This takes the total IPO size to Rs 2,615 crore at the upper end of the price band.

At present, Go Digit Infoworks Services owns 83.3 per cent stake in the company.

Proceeds from the fresh issuance have been proposed to be utilised for the augmentation of the company's capital base and maintenance of solvency levels and general corporate purposes.

Cricketer Virat Kohli and his wife and actor Anushka Sharma are among the investors in the firm. They are not selling any stake in the IPO.

About 75 per cent of the issue size has been reserved for qualified institutional investors, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors. Investors can bid for a minimum of 55 equity shares and in multiples of 55 equity shares thereafter.

Go Digit offers motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and other insurance products, to meet the needs of the customers.

It is one of the first non-life insurers in India to be fully operated on the cloud and has developed application programming interface (API) integrations with several channel partners.

ICICI Securities, Morgan Stanley India Company, Axis Capital, HDFC Bank, Nuvama Wealth Management and IIFL Securities are book running lead managers to Go Digit's IPO.