Go Digit IPO Review
English

Go Digit IPO

Go Digit Insurance consists of a fresh issue of shares worth INR 1250 crores and an offer to sell 10.94 crores of existing equity shares. The company plans to utilize the raised funds to meet the solvency ratios and to meet the general corporate purpose. 

Go Digit IPO – Important Details

Go Digit IPO DateMay 15, 2024 to May 17, 2024
Go Digit IPO Listing DateMay 23, 2024
Go Digit IPO PriceINR 258-272 per share
Go Digit IPO Lot Size55 shares
Go Digit IPO Total Issue SizeINR 2,614.65 crores
Go Digit IPO Basis of AllotmentMay 21, 2024
Go Digit IPO Initiation of RefundsMay 22, 2024
Go Digit IPO Credit of Shares to DematMay 22, 2024
Go Digit IPO Issue TypeBook Built Issue IPO
Go Digit IPO Listing AtBSE, NSE

Go Digit IPO – Company Profile

Go Digit, a leading digital full-stack insurance company prioritizes simplicity and transparency. Through innovation and technology integration, they deliver seamless customer experiences in non-life insurance products, offering a range of customizable options such as motor, health, travel, property, marine, and liability insurance.

Their company pioneers innovations in insurance documentation, focusing on making policies understandable to all, including 15-year-olds. Research with kids validated their approach, as 15-year-olds successfully grasped and comprehended their simplified policy documents, ensuring adult accessibility.

Their commitment includes providing customers with a comprehensive policy summary and standard documentation. Upon policy issuance, customers receive an insurance policy document, an authoritative package summary, and a detailed policy wording document with simplified explanations for clarity. 

Go Digit IPO Review  

Go Digit’s financial analysis reveals a mixed performance. The revenue trend shows an initial decline followed by a recovery. Profitability and EPS improved, while RoNW decreased, signaling varied financial performance. 

  1. Revenue Trend: The revenue increased from ₹(3,751.43) million in March 2022 to (662.75) million in March 2023. The revenue for the current year’s 9-month period ending December 2023 is INR (101.22) million. 
  1. Equity and Liabilities: Both equity and total liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. 
  1. Profitability: The profit after tax (PAT) has increased from ₹(2,958.51) million in March 2022 to ₹1,290.17 million by December 2023. This improvement in profitability could be a source of confidence for investors. 
  1. Earnings per Share (EPS): The diluted EPS has also increased from ₹(3.55) in March 2022 to ₹1.46 by December 2023, reflecting higher earnings per share for investors. 
  1. Return on Net Worth (RoNW): The RoNW has declined from (15.85)% to 5.25%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
  1. Financial Position: Total assets have increased, suggesting potential business growth. 

Go Digit IPO – Fundamental Analysis

ParticularAs at 31 March 2022As at 31 March 2023As at 31 December 2023
Revenue (₹ in Million)(3,751.43)(662.75)(101.22)
Equity (₹ in Million)18,932.1923,523.1124,907.45
Profit and Loss After Tax (₹ in Million)(2,958.51)355.471,290.17
RoNW (%)(15.85)1.535.25
NAV per Equity Share (₹)21.7326.6128.12
Diluted EPS only (₹)(3.55)0.401.46
Total Assets (in million)1,00,477.261,34,895.56160,171.45
Total Liabilities (in million)81,545.071,11,372.45135,264.00

Go Digit Insurance IPO Peer Comparison

Digit General Insurance demonstrates consistent growth in EPS, though with lower valuations compared to peers. New India Assurance boasts significant scale and robust valuation multiples, reflecting investor confidence. Star Health exhibits strong earnings and valuation ratios, positioning it as a competitive player in the insurance industry. 

CompanyFace Value per Equity Share (₹)P/EEPS (Basic) (₹)EPS (Diluted) (₹)RoNW (%)NAV per Equity Share (Basic) (₹)
Go Digit General Insurance Limited10NA0.410.401.5326.61
New India Assurance Company Limited538.47x6.366.365.13125.64
Star Health and Allied Insurance Company Limited1053.79x10.7010.4111.3993.35
ICICI Lombard General Insurance Company Ltd1048.14x35.2135.1616.64211.60

Go Digit Insurance IPO Objective

The main objective of Go Digit Insurance’s IPO is to utilize INR 1,250 crores to maintain a robust solvency ratio vital for business growth. Additionally, offer expenses for listing equity shares will be shared proportionately among the company and selling shareholders.

  1.  Maintenance of solvency ratio: The company plans to utilize INR 1,250 crores from the net proceeds for the maintenance of the solvency ratio, as solvency is crucial for business growth and contingencies.
  2. Other Expenses: Offer expenses for listing Equity Shares include fees, commissions, legal, advertising, and other costs. Company and Selling Shareholders share expenses based on the proportion of issued and transferred shares.

Go Digit General Insurance Limited IPO Risks and Challenges

Go Digit IPO risks include its history of losses and limited operational experience, raising uncertainties. Challenges in estimating loss reserves, adherence to IRDAI regulations on equity shares, and heavy reliance on motor insurance revenue highlight vulnerabilities to market and regulatory changes.

  • Despite a recent profit, Go Digit’s consistent history of losses and limited operating experience pose challenges in assessing future profitability, raising uncertainties about sustained financial success.
  • Due to uncertainty in estimating reserves for losses, inadequate reserves may adversely affect financial condition. Establishing liabilities for unpaid claims, particularly IBNR and IBNER, involves methods based on business nature, historical data, and regulatory guidelines, impacting competitiveness and financial outcomes.
  • The IRDAI Registration Regulations (2022) impose lock-in requirements on equity shares post-investment, affecting shareholding patterns. Inconsistencies between IRDAI letters and regulations prompt the company to seek clarification. Non-compliance may lead to penalties and hinder investment, impacting share market and equity prices.
  • Revenue reliance on motor insurance in India makes the company vulnerable to shifts in vehicle demand and government policies. Regulatory changes and customer preferences pose risks, while inadequate insurance premiums may impact financial stability.

Go Digit Insurance IPO – Industry & Market Potential

India’s demographics, featuring a significant young working population, contribute to an advantageous position in an aging world. Increasing income levels, heightened health concerns post-Covid, and focusing on lifestyle improvements drive potential growth in insurance and financial products consumption.

India experiences substantial digital growth driven by internet and smartphone adoption. This trend is expected to enhance accessibility to financial services. Factors include rising smartphone usage, lower data costs, technological innovations, and government initiatives toward a US$1 trillion digital economy by 2025.

Technology advancements have transformed the insurance landscape, allowing digital full-stack players to automate sales, utilize ecosystem partnerships, and enhance customer engagement. Leveraging internet aggregation, digital payments, and automation expedites processes, ensuring efficient data processing and improved claims management, providing customers with a seamless experience.

Go Digit General Insurance Limited IPO – Type of Offer

Go Digit plans a fresh issue of shares, seeking INR 1250 crores to augment the capital needs of the company. Additionally, the company proposes an offer for sale, intending to sell 10.94 crore existing shares.

1.  Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 1250 crores. The company will use the funds to maintain the solvency ratio and to meet other expenses.

2.  Offer for sale: Go Digit is offering to sell 10.94 crore existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:

Name of the promoter selling shareholderMaximum number of offered shares for sale (in millions)
Go Digit Infoworks Services Private Limited109,434,783

Go Digit General Insurance Limited IPO Offer Size

The offer size of Go Digit General Insurance’s IPO is INR 2,614.65 crores, consisting of a fresh issue of shares worth INR 1250 crores and the sale of 10.94 crores of existing equity shares. The company will use the funds to maintain the solvency ratio and to meet other expenses.

Go Digit General Insurance Ltd IPO Allotment Structure

Go Digit allocation will be as follows: 75% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for Retail Individual Investors (RII) in accordance with SEBI regulations. A portion of the issue is also set aside for the eligible employees.

  • Qualified Institutional Buyers (QIB): As per SEBI regulations, 75% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
  • Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
  •  Retail Individual Investors (RII): The remaining 10% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
  • Eligible Employees: A portion of the issue is reserved for eligible employees.

How to apply for a Go Digit IPO?

To apply for the Go Digit IPO through Alice Blue, you would typically follow these steps:

1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.

2. Check for IPO Details: Once your account is active, you can check for the Go Digit IPO details in the IPO section of the Alice Blue platform.

3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.

4. Submit the Application: Confirm all your details and submit your application.

 You can apply for Go Digit Limited’s IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How to Check Go Digit IPO Allotment Status on Alice Blue?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.

2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.

3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.

4. Select the Go Digit IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Go Digit IPO.

5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.

Apart from Alice Blue, there are other ways to check the allotment status of the Go Digit IPO:

Registrar’s Website: Visit the website of Link In time India Private Limited, the registrar of the Go Digit IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.

Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.

Go Digit IPO Offer Registrar

The registrar for the Go Digit IPO is Link In Time India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar:

Link In time India Private Limited

C-101, 1st Floor, 247 Park

L.B.S.Marg

Vikhroli West

Mumbai 400 083,

Maharashtra, India

Telephone: +91 810   811 4949

Email: [email protected]

Website: www.linkintime.co.in

Go Digit IPO FAQs

1. What is the allotment date of the Go Digit IPO?

The allotment date of the Go Digit IPO is  May 21, 2024. 

2. What is the price band of the Go Digit IPO?

The price band of the Go Digit IPO is INR 258-272 per share. 

3. What is the size of the Go Digit IPO?

The offer size of Go Digit General Insurance’s IPO is INR 2,614.65 crores, consisting of a fresh issue of shares worth INR 1250 crores and the sale of 10.94 crores of existing equity shares. The company will use the funds to maintain the solvency ratio and to meet other expenses.

4. What is the listing date of the Go Digit IPO?

The listing date of the Go Digit IPO is May 23, 2024.