The Securities and Exchange Board of India (SEBI) has granted approval for the initial public offering (IPO) of Go Digit, a general insurance company backed by cricketer Virat Kohli and his wife Anushka Sharma. The IPO faced several compliance-related challenges, causing delays in regulatory approval. SEBI raised concerns over share issuance, leading to the draft offer document being returned twice. However, after addressing these concerns, Go Digit’s IPO has now received the green light from the market regulator.
Go Digit’s IPO details include a fresh issue of shares worth ₹1,250 crore ($152.1 million) and an offer for sale of 109.4 million shares. The company plans to utilize the net proceeds to strengthen its capital base and maintain solvency levels. Go Digit operates in the general insurance sector and is supported by investors such as Canadian billionaire Prem Watsa’s Fairfax Group and A91 Partner.
During the period from 2018 to 2022, Go Digit reported an underwriting loss of ₹1,917 crore and earned an investment income of ₹746 crore. The net operating loss stood at ₹1,171 crore during the same period.
Book-running lead managers for the IPO include ICICI Securities, Morgan Stanley India, Axis Capital, Edelweiss Financial Services, HDFC Bank, and IIFL Securities. The approval from SEBI marks a significant step for Go Digit as it prepares to go public and capitalize on the growing demand in the insurance sector.
