Additionally, a pre-IPO placement of equity shares, or any other method aggregating up to INR 250 crores may be considered by the InsurTech firm which in consultation with merchant bankers to the issue
To raise funds through an initial public offering (IPO), Go Digit General Insurance, a new age InsurTech firm has filed its Draft Red Herring Prospectus (DRHP) with the markets regulator, Securities and Exchange Board of India (SEBI).
The proposed issue will be a mix of Fresh Issue and Offer for Sale.
Ws per the DRHP dated August 14, available on ICICI Securities’ website, the Bengaluru-based InsurTech firm is expected to raise up to INR 1,250 crore via the fresh issue and offer 109,445,561 shares in the offer for sale.
The Offer is being made through the Book Building Process, wherein at least 75 per cent of the Offer shall be available for allocation to Qualified Institutional Buyers, not more than 15 per cent of the Offer shall be available for allocation to Non-Institutional Bidders, and not more than 10 per cent of the Offer shall be available for allocation to Retail Individual Bidders.
Additionally, a pre-IPO placement of equity shares, or any other method aggregating up to INR 250 crores may be considered by the InsurTech firm which in consultation with merchant bankers to the issue.
The fresh issue size will be reduced if such placement is completed.
The total IPO is likely to be worth INR 3,500 crore ($440 million), according to a person with direct knowledge of the matter. Digit Insurance declined to comment on the IPO’s size, it added.
The Insurer said in a media release, the proceeds from its fresh issuance are worth INR 1250 crore and will be utilized for the augmentation of the InsurTech company’s capital base and maintenance of solvency levels and general corporate purposes.
As per the DRHP, selling holders in the OFS included Go Digit Infoworks Services (up to 109,434,783 shares), Nikita Mihir Vakharia, jointly with Mihir Atul Vakharia (up to 4,000 shares), Nikunj Hirendra Shah, jointly with Sohag Hirendra Shah (up to 3,778 shares) and Subramaniam Vasudevan, jointly with Shanti Subramaniam (up to 3,000 shares).
The book running lead managers of the issue include ICICI Securities, Morgan Stanley, Axis Capital, Edelweiss Financial Services, HDFC Bank, and IIFL Securities and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
The InsurTech firm is a digital full-stack insurance company which caters to approximately 82.9 per cent of the gross written premiums (GWP) written by digital full-stack insurance players at INR 5,268 crore in FY22, making it the largest digital full-stack insurance player in India.
The InsurTech firm grew at 52.9 per cent CAGR over FY20-22. With 2,568 employees as of 31 March 2022, and 1,936 employees as of 31 March 2021, its GWP per employee stood at INR 2.34 crore FY22 compared with INR 1.6-2.1 crore for non-life insurance companies in India.
CIO News, a proprietary of Mercadeo, produces award-winning content and resources for IT leaders across any industry through print articles and recorded video interviews on topics in the technology sector such as Digital Transformation, Artificial Intelligence (AI), Machine Learning (ML), Cloud, Robotics, Cyber-security, Data, Analytics, SOC, SASE, among other technology topics