Day 2 of the Go Digit IPO: Go Digit General Insurance Limited’s initial public offering (IPO) began on Wednesday and will run through Friday. The insurance business set the price range for the Go Digit IPO at ₹258 to ₹272 per equity share, with support from Indian cricket player Virat Kohli, his wife, and well-known Bollywood actress Anushka Sharma. After the first day of bidding, the public offering valued ₹1489.65 crore has been booked 0.36 times, according to the Go Digit IPO subscription status. In the gray market, the book build issue is also becoming more prevalent. Go Digit General Insurance Limited shares are currently available on the grey market at a premium of ₹46, according to market experts.
Day 2 of the Go Digit IPO: GMP, status of subscriptions, and price review.
Go Digit IPO GMP right now
As previously mentioned, the grey market premium (GMP) for the Go Digit IPO is currently ₹46, Re 1 more than it was on Wednesday (₹45). Market watchers noted that it is encouraging that Go Digit IPO GMP has been constant despite the Indian stock market ending a three-day winning streak. They anticipated that when the secondary market picks up steam, sentiment in the grey market will continue to rise.
Status of Go Digit IPO subscription
The book-build issue has been booked 0.36 times after the first day of bidding. The issue attracted bids of 1,88,97,835 shares against the offered 5,28,69,677 equity shares at a price range of ₹258 to ₹272, per the data accessible on the stock markets. While the Qualified Institutional Buyer Portion is still lacking traction, the Retail Portion and Non-Institutional Investors Portion saw 1.44 and 0.34 times, respectively, of subscriptions.
In anticipation of Go Digit shares making a strong entrance on Dalal Street, VLA Ambala, the Founder of Stock Market Today, highlighted the impressive growth of Go Digit General Insurance Limited. The company saw a significant surge of 113.35% in revenue and a 112.01% rise in profits between March 31, 2022, and March 31, 2023. Additionally, its assets ballooned from Rs.1,874.80 crore in 2021 to Rs.3,346.75 crore in 2023, with a landmark net profit of Rs.35.54 crore for the first time. Boasting reserves and surplus totaling Rs.2,391.97 crore and with total borrowings standing at Rs.200 crore, it is perceived to be in a solid financial standing. However, concerns arise over the aggressive pricing of its IPO, especially based on its FY24 annualized earnings. Analysts suggest that its listing might experience subdued activity or a moderate premium ranging between 5-15%.
Senior Research Analyst at Bonanza Portfolio Rajesh Sinha made the following statement regarding Go Digit’s IPO: “We think that Go Digit’s ability to continuously introduce novel products and value propositions for its clients sets it apart from its competitors. In order to improve client reach and attract new business, it also intends to broaden and diversify its distribution network. It can underwrite effectively thanks to its cutting-edge technologies. Additionally, it makes use of cutting-edge technology to support partners, clients, and procedures by advancing predictive underwriting models.”
Review of Go Digit’s IPO (Go Digit IPO day 2)
Go Digit is an insurance company that provides a variety of goods, such as liability, property, marine, health, travel, and auto insurance. These goods can be customized to satisfy the needs of each unique customer. Go Digit has improved its underwriting performance, grown its business dramatically, and produced consistent returns on investment. As of Q3FY24, it had partnerships with over 61,972 Key Distribution Partners, including 58,532 POSPs and individual agents, corporate agents, brokers, and others, and its distribution network covered 24 states and union territories in India.
Go Digit’s Gross Written Premium (GWP) increased by 26.3% from 9MFY23 to Rs. 66.8 billion in 9MFY24. During FY21–23, its GWP increased at a CAGR of 49.4%.
Anushka, Virat Kohli-backed IPO
As per the Red Herring Prospectus (RHP) submitted by Go Digit General Insurance Limited, the renowned celebrity couple known as ‘Virushka’ has made substantial investments in the company. Indian cricket star Virat Kohli possesses 2,66,667 shares of Go Digit, while actress Anushka Sharma holds 66,667 shares. Both celebrities obtained these shares at a rate of ₹75 per share.
(Disclaimer: Businessuncover does not endorse the opinions or suggestions expressed above; rather, these represent the opinions of certain analysts or broking firms. It is recommended that investors consult with qualified specialists prior to making any financial decisions.)
Also Read |Â Go Digit IPO begins today; see the GMP, subscription status, review, and further information. Apply or not?
