Mumbai :
The shares for the Go Digit General Insurance IPO will be allotted on Tuesday, May 21. In light of the Mumbai elections, the BSE and NSE stock exchanges were closed on Monday, May 20.
The refund procedure will start on Wednesday, May 22, for those who were not given shares.
The shares will be deposited into the demat accounts of the allottees on Wednesday. Go Digit IPO listing date has been fixed for Thursday, May 23.
Grey Market Trends and Analysis
Analyzing Grey Market Premium (GMP)
Analysts at investorgain.com claim that the current GMP (₹22.50) is indicating a downward trend based on activity in the grey market during the previous 12 sessions. Rs. 11 is the lowest GMP and Rs. 70 is the highest.
Go Digit IPO GMP today is +22.50. This indicates Go Digit share price were trading at a premium of ₹22.50 in the grey market, according to investorgain.com.
It is projected that Go Digit’s shares would list at a price of ₹294.5 per share, 8.27% higher than the IPO price of ₹272, once the upper end of the IPO pricing range and the current premium on the grey market are taken into account.
Understanding Go Digit IPO Subscription
Subscription Status and Bidding Details
The initial public offer of Go Digit General Insurance, was subscribed 9.60 times on day three of bidding.
The retail individual investors (RIIs) portion was subscribed 4.27 times, while the quota for non-institutional investors received 7.24 times subscription.
Qualified institutional buyers (QIBs) part fetched 12.56 times subscription.The initial share sale received bids for 50,76,21,455 shares against 5,28,69,677 shares on offer, as per BSE data.
Allocation Details and Reserved Portions
Allocation Breakdown and Reservation
About 75% of the issue size has been reserved for qualified institutional investors, 15% for non-institutional investors and the remaining 10% for retail investors.
Insights into Go Digit IPO
Company Details and Offer Structure
The Go Digit General Insurance IPO consists of an offer-for-sale (OFS) of 54,766,392 equity shares by the promoters and other selling shareholders, together with a fresh issue of ₹1,125 crore.
The net proceeds will be used by the firm to fund the initiatives that are recommended to be supported by the net profits in addition to the company’s ongoing business activities.
The company also expects benefits from listing the equity shares on stock markets, as it thinks this will enhance its reputation and brand awareness among both present and potential customers.
Key Players and Investment
Key Players and Investment Highlights
The book running lead managers for the Go Digit IPO are ICICI Securities Limited, Axis Capital Limited, Edelweiss Financial Services Ltd, Hdfc Bank Limited, and Iifl Securities Ltd. Link Intime India Private Ltd. is the issue registrar.
The company’s 2.67 lakh shares was bought by cricket player Virat Kohli for ₹2 crore in 2020, while his wife, actress Anushka Sharma, invested 50 lakh in a private placement.
Company Overview and Market Position
Positioning and Market Presence
The company is one of the top digital full stack non-life insurance providers, according to the Red Herring Prospectus (RHP).
They use technology to drive what they see as an inventive approach to non-life insurance product design, distribution, and customer experience.
