Go Digit IPO Soars with Over 9x Subscription, Led by Institutional Investors

Go Digit General Insurance, a Bengaluru-based insurtech startup, has witnessed a strong showing in its initial public offering (IPO). Here's a breakdown of the key details and investor interest:

Subscription Details:

• The IPO received subscriptions 9.6 times higher than the shares offered, exceeding expectations at the close of the book building process on Friday.
• This positive response is primarily driven by qualified institutional buyers (QIBs) who subscribed 12.5 times their allocated portion.
• The retail investor segment subscribed to 4.3 times their allocated shares.

Fund Raising and Share Distribution:

• Go Digit aims to raise Rs 1,125 crore through a combination of fresh issue and an offer for sale of existing shares.
• A significant portion of the offer for sale involves shares held by Go Digit Infoworks, the parent company (currently holding 80.5% stake).
• Some existing individual shareholders will also be reducing their holdings through the IPO.
• The company had reserved a larger share allocation for QIBs (75%), followed by non-institutional investors (15%) and retail investors (10%).

Anchor Investor Participation:

• Go Digit successfully secured Rs 1,176.5 crore from anchor investors prior to the IPO launch.
• This pre-IPO funding round drew participation from prominent international investors like Fidelity, Goldman Sachs, Abu Dhabi Investment Authority, and Steadview Capital.
• Leading Indian mutual funds, including SBI Mutual Fund, ICICI Prudential Mutual Fund, and Axis Mutual Fund, also showed strong interest.
• Around 43.2 million equity shares were allocated to anchor investors at Rs 272 per share.