Virushka-backed Go Digit shares debut at 5.15% premium over IPO issue price

Shares of Go Digit General Insurance Ltd, backed by Virat Kohli and his actress wife Anushka Sharma (both referred to as Virushka), were listed at a premium of 5.15% on the NSE and 3.35% on the BSE today.

The BSE data shows the shares opened marginally up at ₹281.10 against the issue price of ₹272 and surged to an intra-day high of ₹309.90, up 9.59% from the opening price and 13.25% from the issue price. At the current share price, Go Digit's m-cap stands at ₹28,254.42 crore.

The general insurance company share opened at ₹286 on the NSE and surged to the day's high of ₹309.80. At the time of filing the report, 31,17,176 shares were exchanging hands on the counter, the NSE data shows.

Before the listing, the new-age insurer shares were commanding a premium of ₹25 in the unregulated grey market.

Go Digit, also backed by Canada's Fairfax Group, had set a price band for its public offer at ₹258-272 per share and the insurer planned to raise ₹2,614 crore at the upper end of the price band. The IPO of the insurer opened for subscription on May 15 and closed on May 17. The IPO of Go Digit was subscribed 9.60 times, with the qualified institutional buyers(QIBs) category subscribing the highest 12.56 times, the non-institutional investors quota subscribing 7.24 times and the retail individual investors(RIIs) category subscribing 4.27 times.

The Go Digit IPO comprised a fresh issue of ₹1,125 crore and an offer for the sale of ₹5.48 crore shares by its promoters and existing shareholders. The lot size was 55 shares and in multiple thereafter. The company has reserved up to 75% of the shares for QIBs, 15% for NIIs, and the remaining 10% for retail investors.

The general insurance company filed the preliminary IPO papers with the capital market regulator SEBI in April 2023 and received approval on March 1, 2024. It had first filed the draft red herring prospectus (DRHP) in August 2022, which was returned by the regulator on January 30, 2023, due to certain compliance issues, and was asked to refile with certain updates.

Go Digit offers motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and other insurance products, to meet the needs of the customers. It was one of the fastest-growing insurers among private non-life insurers by gross written premium (GWP) in fiscal 2022, as per the company-commissioned RedSeer report mentioned in the DRHP.

ICICI Securities Limited, Morgan Stanley India Company Private Limited, Axis Capital Limited, Edelweiss Financial Services Limited, HDFC Bank Limited, and IIFL Securities Limited are the book-running lead managers and Link Intime India Private Limited is the registrar to the offer.