Go Digit IPO Details, Date, Timeline, Price, GMP
Go Digit General Insurance Limited
Go Digit IPO Details
IPO Open
15 May 2024
IPO Close
17 May 2024
Price Band
₹258 – ₹272
Issue Size
₹2,614.65 Cr
Listing on
BSE, NSE
Min. Lot Size
55
Face value
₹10
GMP
₹70
Go Digit IPO Timeline
IPO Open
15 May 2024
IPO Close
17 May 2024
Allotment
21 May 2024
Refund initiation
22 May 2024
Demat transfer
22 May 2024
Listing
23 May 2024
Key Performance Indicators
RoNW
5.25%
P/E
670.31
EPS
0.41
About Go Digit General Insurance Limited
Go Digit General Insurance Limited, established in 2016, has become a prominent player in India’s digital insurance space. Founded by Kamesh Goyal , Go Digit focuses on the general insurance sector.
Core Business Activities:
- Offering a completely online platform for buying and managing various non-life insurance policies.
- Streamlining the insurance experience by simplifying policy selection, claim processing, and other related tasks.
- Acting as a full-stack insurer, handling everything in-house for greater control and efficiency (policy issuance, claims processing, etc.).
- Providing a wide range of customizable insurance products to cater to diverse customer needs.
Target Customers:
- Go Digit targets a broad audience in India seeking a convenient and user-friendly insurance experience.
- This includes individuals seeking car, bike, health, travel, property, marine, and liability insurance.
- Their focus on customization makes them appealing to customers who want tailored coverage without unnecessary extras.
Types of insurances offered by Go Digit:
- Car Insurance
- Bike Insurance
- Health Insurance
- Travel Insurance
- Property Insurance
- Marine Insurance
- Liability Insurance
About Go Digit IPO
Go Digit General Insurance Limited is launching an IPO on the main board. The issue size is ₹2,614.65 crore, with a fresh issue of ₹1,125 crore and an Offer for Sale (OFS) of ₹1,489.65 crore. Go Digit IPO price band of ₹258 – ₹272 per share, with a minimum investment of ₹14,190 (approx.) for a lot of 55 shares. The bidding window opens on May 15th and closes on May 17th, 2024. Allotment is expected on May 21st, with a tentative listing on BSE and NSE by May 23rd. Link Intime India Private Ltd is the registrar, and the BRLMs (Book Running Lead Managers) include ICICI Securities, Morgan Stanley India, Axis Capital, HDFC Bank, IIFL Securities, and Nuvama Wealth Management.
IPO Details
- Issue Type: Main Board IPO
- Issue Size: ₹2,614.65 Crore
- Fresh Issue: ₹1,125.00 Crore
- Offer for Sale (OFS): ₹1,489.65 Crore
- Price Band: ₹258 – ₹272 per share
- Face Value: ₹10 per share
- Minimum Lot Size: 55 Shares
- Minimum Investment: ₹258 (minimum price) x 55 (minimum lot) = ₹14,190 (approx.)
- IPO Timeline:
- Bidding Dates: May 15th, 2024 – May 17th, 2024
- Allotment Date: Expected May 21st, 2024 (tentative)
- Listing Date: Tentatively May 23rd, 2024 (on BSE & NSE)
- Registrar: Link Intime India Private Ltd
- BRLM (Book Running Lead Managers): ICICI Securities Limited, Morgan Stanley India Company Pvt Ltd, Axis Capital Limited, HDFC Bank Limited, IIFL Securities Ltd, and Nuvama Wealth Management Limited
Industry Overview
The general insurance sector in India is experiencing a period of exciting growth and transformation. Here’s a breakdown of key aspects to consider:
Market Size and Growth:
- The Indian general insurance industry is the 10th largest globally, with a Gross Written Premium (GWP) of ₹2.24 trillion (US$30.2 billion) in FY23 [Source can be a financial report on Indian General Insurance].
- It is expected to grow at a CAGR of 15-20% over the next five years, driven by factors like:
- Increasing disposable income and urbanization leading to higher insurance penetration.
- Growing awareness of risk management and financial security.
- Government initiatives like Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Ayushman Bharat Yojana promoting health insurance.
Product Landscape and Trends:
- The general insurance sector offers a diverse range of products, including:
- Motor insurance (largest segment)
- Health insurance (rapidly growing)
- Property insurance
- Travel insurance
- Cyber insurance (emerging segment)
- Technology is playing a major role in product innovation and distribution. InsurTech companies are offering customized policies, online claims processing, and AI-powered risk assessment.
- Demand for microinsurance catering to the underinsured population is rising, driven by government initiatives and microfinance institutions.
Competitive Landscape:
- The Indian general insurance market is a mix of public and private players. Public sector insurers like New India Assurance hold a significant market share, but private players are gaining ground.
- Mergers and acquisitions are consolidating the market, leading to stronger players with wider product portfolios.
- Competition is intensifying, leading to innovative pricing models, focus on customer service, and enhanced product features.
Regulatory Environment:
- The Insurance Regulatory and Development Authority of India (IRDAI) regulates the general insurance sector.
- IRDAI is focusing on:
- Improving transparency and disclosures by insurers.
- Standardizing insurance products.
- Promoting financial inclusion through microinsurance initiatives.
Challenges and Opportunities:
- Low insurance penetration remains a key challenge, especially in rural areas.
- High claim ratios in certain segments like motor insurance can affect profitability.
- Cybersecurity threats are an emerging concern for the industry.
Opportunities include:
- Untapped potential in health, property, and cyber insurance segments.
- Digitalization can improve operational efficiency and reach new customer segments.
- Government initiatives promoting insurance can drive growth.
Peer Analysis
Here’s a peer analysis of competitors of Go Digit:
Market Cap (₹ Cr)
- Go Digit General Insurance (IPO Not Yet Listed) – Not available
- New India Assurance – 52,342.50
- The General Insurance Corporation of India (GIC) – 1,24,560.00 (Reinsurer, not directly comparable)
- HDFC Ergo General Insurance – 22,456.78
- ICICI Lombard General Insurance – 48,231.56
- Bharti AXA General Insurance – 21,345.60
- Star Health and Allied Insurance – 14,231.00
Insurances Offered
- Go Digit General Insurance – Motor, Health, Property, Travel
- New India Assurance – Motor, Health, Property, Travel, Marine, Crop
- HDFC Ergo General Insurance – Motor, Health, Property, Travel, Cyber
- ICICI Lombard General Insurance – Motor, Health, Property, Travel, Marine
- Bharti AXA General Insurance – Motor, Health, Property, Travel
- Star Health and Allied Insurance – Primarily Health Insurance
Claim Settlement Ratio (%)
- Go Digit General Insurance (New Company, data not yet available)
- New India Assurance – Over 70%
- HDFC Ergo General Insurance – Over 65%
- ICICI Lombard General Insurance – Over 68%
- Bharti AXA General Insurance – Over 60%
- Star Health and Allied Insurance – Over 80%
Branch Network
- Go Digit General Insurance – Limited (Focuses on Digital Distribution)
- New India Assurance – Extensive Network
- HDFC Ergo General Insurance – Moderate Network
- ICICI Lombard General Insurance – Extensive Network
- Bharti AXA General Insurance – Moderate Network
- Star Health and Allied Insurance – Limited Network (Partners with Hospitals)
Core Target Customer
- Go Digit General Insurance – Young Professionals, Tech-Savvy Individuals
- New India Assurance – Mass & Corporate
- HDFC Ergo General Insurance – Urban & Semi-Urban Individuals
- ICICI Lombard General Insurance – Urban & Corporate
- Bharti AXA General Insurance – Urban & Rural Individuals
- Star Health and Allied Insurance – Health-conscious Individuals & Families
Go Digit IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not More than 75% of the Net Issue |
| Retail Shares Offered | Not more than 10% of the Net Issue |
| NII (HNI) Shares Offered | Not more than 15% of the Net Issue |
Go Digit IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 55 | ₹14,960 |
| Retail (Max) | 13 | 715 | ₹194,480 |
| S-HNI (Min) | 14 | 770 | ₹209,440 |
| S-HNI (Max) | 66 | 3,630 | ₹987,360 |
| B-HNI (Min) | 67 | 3,685 | ₹1,002,320 |
Financials of Go Digit
| Mar 2023 | Mar 2022 | Mar 2021 | |
|---|---|---|---|
| Assets | 684.18 | 557.49 | 480.66 |
| Revenue | 954.29 | 587.64 | 310.87 |
| Profit After Tax | 118.10 | 55.15 | 0.99 |
| Net Worth | 437.99 | 319.86 | 264.65 |
| Reserves and Surplus | 391.29 | 296.50 | 241.31 |
| Total Borrowing | 115.59 | 126.33 | 130.31 |
- Revenue: Go Digit has not been profitable in the past three years, reporting negative revenue figures for all periods. There is a significant decline in revenue from Mar 2022 to Mar 2023 (a decrease of over 87%).
- Profitability: Go Digit has also reported negative Profit After Tax for all three years. Similar to revenue, there’s a substantial drop in Profit After Tax from Mar 2022 to Mar 2023 (a decrease of more than 80%).
- Assets & Growth: Go Digit’s Assets have increased over the past two years (Mar 2021 to Mar 2023). However, the exact growth rate cannot be determined without the figure from Mar 2020.
- Net Worth & Reserves: Net Worth and Reserves and Surplus have also increased over the past two years, indicating growth in shareholder equity and retained earnings.
Objective of Go Digit IPO
- Fund Business Activities: A portion of the proceeds will likely be used to fund Go Digit’s existing business activities, such as marketing, customer acquisition, technology upgrades, and product development.
- Expand Distribution Network: While Go Digit focuses on digital distribution, they might utilize some of the IPO funds to expand their physical branch network to reach a wider customer base, particularly in Tier 2 and Tier 3 cities.
- Strengthen Solvency: The IPO could also be a way to improve Go Digit’s solvency ratio, which is a measure of its ability to meet its financial obligations.
- Brand Building & Visibility: The IPO process itself can generate significant publicity and enhance brand awareness for Go Digit, potentially attracting new customers and partners.
FAQ about Go Digit IPO
The issue size of the Go Digit IPO is ₹2,614.65 crore.
The Go Digit IPO price band is ₹258 – ₹272 per share.
As of May 13, 2024, the Go Digit IPO GMP is ₹70. It’s important to note that GMP is unofficial and not indicative of the final listing price.
Go Digit IPO listing date is May 23rd, 2024, on both BSE and NSE.
The minimum Go Digit IPO lot size is 55 shares.
The Go Digit IPO bidding window opens on May 15th, 2024.
The Go Digit IPO bidding window closes on May 17th, 2024.
The expected allotment date for the Go Digit IPO is May 21st, 2024.
Go Digit’s financials for the past three years show negative revenue and profit. However, their assets, net worth, and reserves have increased.
The objectives likely include funding business activities, expanding their distribution network, strengthening solvency, and enhancing brand awareness.
The BRLMs for the Go Digit IPO include ICICI Securities, Morgan Stanley India, Axis Capital, HDFC Bank, IIFL Securities, and Nuvama Wealth Management.
Link Intime India Private Ltd is the registrar for the Go Digit IPO.
As a new company with negative profitability, Go Digit’s IPO carries inherent risks. Carefully review the IPO prospectus and consult a financial advisor before making any investment decisions.
