STARTUP-STORIES
Go Digit IPO Soars with Over 9x Subscription, Led by Institutional Investors
SUMMARY
Go Digit General Insurance's IPO received a strong response, subscribed over 9 times by the end of the book building process. This positive response is driven by qualified institutional buyers (QIBs) who subscribed 12.5 times their allocated share, while retail investors subscribed 4.3 times theirs.
The company aims to raise Rs 1,125 crore through a combination of fresh issue and selling existing shares. They had already secured Rs 1,176.5 crore from anchor investors including Fidelity, Goldman Sachs, and prominent Indian mutual funds.
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.