New Delhi: Go Digit General Insurance Ltd, a company backed by Canada-based Fairfax Group, has been granted approval by the Securities and Exchange Board of India (SEBI) to raise capital through an initial public offering (IPO), according to an update from the regulator on Monday. The approval came after the company's preliminary IPO papers were first filed in August 2022.
It is pertinent to mention that cricketer Virat Kohli and his wife and actor Anushka Sharma are among the investors in the firm.
According to the draft red herring prospectus (DRHP), Go Digit's proposed IPO comprises fresh issuance of shares worth Rs 1,250 crore and an Offer For Sale (OFS) of 10.94 crore shares by promoter Go Digit Infoworks Services and existing shareholders. Proceeds from the fresh issuance would be utilised for the augmentation of the company's capital base and maintenance of solvency levels and for general corporate purposes.
According to an update with the Sebi on Monday, the regulator gave its observation on March 1. In Sebi's terminology, receiving an observation letter signifies the regulator's approval to proceed with launching the public issue.
Go Digit submitted DRHP in 2022
The company initially submitted the Draft Red Herring Prospectus (DRHP) to Sebi in August 2022 with the intention of raising funds through an initial public offering (IPO). However, the process was delayed primarily due to specific compliance issues related to the employee stock appreciation rights scheme.
Sebi returned Go Digit's draft IPO papers on January 30, 2023, and requested the company to resubmit the documents with certain updates. Subsequently, the company filed the revised preliminary IPO papers with Sebi in April 2023.
Go Digit provides a wide range of insurance products including motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and various other insurance solutions tailored to meet the diverse needs of customers.
It is one of the first non-life insurers in India to be fully operated on the cloud and has developed application programming interface (API) integrations with several channel partners.
Other companies that got Sebi's nod
Apart from Go Digit, Denta Water and Infra Solutions Ltd and KRN Heat Exchanger and Refrigeration Ltd have also received approval from Sebi to launch their maiden public issues. These two firms submitted draft IPO papers to Sebi between December 2023 and January 2024.
Denta Water and Infra Solutions' IPO comprises entirely of a fresh issue of up to 75 lakh equity shares with no offer for sale (OFS) component. The proceeds from this fresh issue, amounting to Rs 150 crore, will be utilized to meet working capital requirements.
On the other hand, the initial public offering of KRN Heat Exchanger is solely a fresh issue of 1.93 crore equity shares with no offer for sale component. The funds raised will be utilized for investing in the wholly-owned subsidiary KRN HVAC Products for establishing a new manufacturing facility at Neemrana, Alwar, in Rajasthan.
Shares of these three companies will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
(With PTI inputs)
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