Go Digit IPO day 2: GMP, subscription status, price to review. Should You Subscribe?

Go Digit IPO Day 2: The initial public offering (IPO) of Go Digit General Insurance Limited opened on Wednesday and will be open until Thursday. The insurer, backed by Indian cricketer Virat Kohli and his wife and Bollywood star Anushka Sharma, has pegged the IPO price of Go Digit at INR 258 to INR 272 per share. . . As per the subscription status of Go Digit IPO after the first day of registration, the public issue was fixed at Rs 1489.65 crore which is 0.36 times. The problem of building books on the gray market is growing. According to market watchers, Go Digit General Insurance Limited shares are available at INR 46 in the gray market today.

Go Digit IPO GMP today

As mentioned, today's Go Digit IPO GMP (Gray Market Premium) price is INR 46, which is 1 percent higher than Wednesday's GMP price of INR 45. It remained Go Digit IPO GMP held as Indian stock market closed for three days. Market watchers say this is a good sign. They believe that the gray market will increase in popularity as the secondary market becomes available.

Go Digit IPO Subscription status

The initial public offering (IPO) of Virat Kohli and Anushka Sharma-backed Go Digit Insurance has gone halfway, with 55 percent subscribed till 2:20 PM on Friday, May 16, 2024. This the second day. vote for this IPO.

The IPO subscription was led by retail investors, whose share was subscribed 2.23x until 1:00 PM. Apart from this, non-institutional investors (NII) subscribed 53 percent of the share reserved for them.

Go Digit Insurance plans to raise Rs 2,615-crore through IPO. It has fixed a price of Rs 258 to Rs 272 for each.

The IPO of the Bengaluru-based insurance company is a combination of a reissue of 41.4 million shares, valued at Rs 1,125.00 crore, and an offer for sale (OFS) of 54.8 million shares in the company. a total of Rs 1,489.65 crore.

Other details

Go Digit is a top digital full-stack insurer and the most rapidly expanding private non-life insurer based on GWP in India. They 

provide a straightforward and tailored customer experience, placing a strong emphasis on empowering their distribution partners.

During the nine-month period ending December 2023, Go Digit saw an increase in net earned premium to Rs 5,115 crore compared to Rs 3,767 crore in the same period of the previous fiscal year. In the 9-month period, it recorded a profit after tax of Rs 129 crore compared to Rs 10 crore in the first 9 months of FY23.

ICICI Securities, Morgan Stanley India, Axis Capital, Edelweiss Financial Services, HDFC Bank, and IIFL Securities are the lead managers handling the books for the IPO.

Go Digit IPO: Should You invest?

Awaiting the launch of Go Digit units at Dalal Street, VLA Ambala, founder of Market Today, said, "Go Digit General Insurance Limited has shown remarkable growth, with 113.35% increase in revenue and 112.01% increase in PAT between March 31, 2022, and March 31, 2023. The company's assets also increased from Rs.1,874.80 crore. in 2021 to Rs.3,346.75 crore in 2023 and reported a profit of Rs.35.54 crore for the first time.With deposits and balances of Rs.2,391.97 crore and gross loans of Rs.200 crore, it appears is in a good financial position. However, its IPO price seems to be based on its FY24 earnings. According to the analysis, its listing may be lower by 5-15%. 

Giving a 'Subscribe long-term' rating to the IPO, Astha Jain, research analyst at Hem Securities, said, "We are giving a long-term subscription statement. The acquisition of the listing may or may not be there, depending on market conditions.

Go Digit is a full time technology insurance company. These are companies that are regulated and licensed by regulatory authorities. However, they add technologies to their work such as liability management, underwriting. This company has the largest market share among digital technology insurance companies, 82 percent on the basis of premiums.

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