Go Digit to debut at the bourses on Thursday; here's what GMP signals ahead of listing

After a healthy response to the IPO, the shares of Go Digit Insurance will debut on the exchanges on Thursday. Ahead of the listing, the company's shares are trading at a premium of Rs 25 in the unlisted market.

Considering the upper price band of Rs 278, the stock is expected to gain around 9-10% on listing.

However, it is important to note that grey market premiums are just an indicator as to how a company's shares are stacked up in the unlisted market and are subject to change rapidly.

The issue was booked nearly 10 times at close on strong interest from retail and institutional buyers.

Ahead of the issue opening, the firm raised about Rs 1,176 crore in the anchor round, where Fidelity Investments, Goldman Sachs, ADIA and Custody Bank of Japan were among investors.

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In 2020, cricketer Virat Kohli bought 2.66 lakh shares of the company for Rs 2 crore while actress wife Anushka Sharma invested 50 lakh through a private placement.

The insurance firm plans to utilise the net proceeds towards augmenting its capital base and maintaining the solvency levels.

Go Digit is a leading digital full-stack insurer and the fastest-growing private non-life insurer by GWP in India. It offers a simplified and customised customer experience, with a strong focus on empowering their distribution partners.

In the nine-month period ending December 2023, Go Digit's net earned premium rose to Rs 5,115 crore vs Rs 3,767 crore in the corresponding period of the previous financial year. It reported a profit after tax of Rs 129 crore in the 9-month period vs Rs 10 crore in the first 9 months of FY23.

ICICI Securities, Morgan Stanley India, Axis Capital, Edelweiss Financial Services, HDFC Bank, and IIFL Securities acted as the book-running lead managers for the IPO.