Go Digit Insurance IPO open for subscription: Should you invest in the Virat Kohli-backed firm?

Go Digit Insurance IPO: The initial public offering (IPO) of Go Digit Insurance, supported by Virat Kohli, opens for subscription today and runs until May 17. The IPO includes a fresh equity issue of Rs 1,125 crore and an offer for sale (OFS) of up to 5.47 crore shares.
As per an ET report, during the OFS, Go Digit Infoworks and other existing shareholders will sell stakes, while Virat Kohli and Anushka Sharma will retain their investments.Kohli acquired 2.66 lakh shares for Rs 2 crore in 2020, while Sharma invested Rs 50 lakh through a private placement.
The insurance firm intends to use the net proceeds to strengthen its capital base and maintain solvency levels.

Analysts suggest investors subscribe to the issue because Go Digit's advanced technology and predictive underwriting model set it up for ongoing innovation and growth.
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Despite the high valuation compared to recent earnings and losses, Go Digit's strong technology and position in a growing market indicate potential for future profits. Taking these into account, Swastika Investmart recommends subscribing to this IPO.

The company set the price range for its first public offering at Rs 258-278 per share, aiming to raise Rs 2,615 crore at the upper limit. Investors can bid for a minimum of 55 shares in one lot and multiples thereafter. 75% of the offer is for QIB investors, 15% for non-institutional investors, and the rest, 10%, for retail investors.

Go Digit is a top digital insurer in India, excelling in non-life insurance with a focus on providing personalized customer experiences and supporting their distribution partners.
In the nine months leading to December 2023, Go Digit's net premium income increased to Rs 5,115 crore from Rs 3,767 crore in the previous year. Its after-tax profit rose to Rs 129 crore from Rs 10 crore in the same period of FY23.
The book-running lead managers for the IPO include ICICI Securities, Morgan Stanley India, Axis Capital, Edelweiss Financial Services, HDFC Bank, and IIFL Securities.