Go Digit General Insurance Limited
Go Digit General Insurance Limited, is offering an exciting opportunity for investors through its Initial Public Offering (IPO).
The company aims to raise ₹2,614.65 crores through fresh issuance of 9.62 crore shares.
Lead Manager & Registrar:
ICICI Securities Limited, Morgan Stanley India Company Pvt Ltd, Axis Capital Limited, Hdfc Bank Limited, Iifl Securities Ltd and Nuvama Wealth Management Limited are the book running lead managers, while Link Intime India Private Ltd is the registrar for the issue.
About the Company
Go Digit General Insurance Limited is a leading digital-first general insurance provider in India. Founded in December 2016, the company has grown rapidly by leveraging technology to offer a streamlined and customer-centric insurance experience.
They offer a wide range of non-life insurance products, including motor, health, travel, property, marine, liability, and more. These products can be customized to meet individual needs.
Go Digit operates entirely online, allowing for a quicker and easier application, purchase, and claim settlement process.
The company had a distribution centers in 24 states and union territories in India where they have deployed 61,972 partners, including 58,532 POSPs and other agents to distribute their offerings.
Key Points about the IPO
| IPO Opens On | May 15, 2024 |
| IPO Closes On | May 17, 2024 |
| Date of Listing | May 23, 2024 |
| Price Band Per Share | ₹258 to ₹272 |
| Lot Size | 55 Shares |
| Minimum investment | ₹14,190 |
| Total Issue Size | ₹2,614.65 Cr |
| Fresh Issue | ₹1,125 Cr |
| Offer for Sale | ₹1,489.65 Cr |
| Exchanges Listing On | BSE, NSE |
Key financials (in ₹ Cr)
| Period Ended | 31 Mar 2021 | 31 Mar 2022 | 31 Mar 2023 | 31 Dec 2023 |
| Assets | 1,874.80 | 2,919.01 | 3,346.75 | 3,619.95 |
| Revenue | -118.55 | -293.64 | 39.19 | 130.83 |
| Profit After Tax | -122.76 | -295.85 | 35.54 | 129.02 |
| Net Worth | 1,134.57 | 1,866.87 | 2,325.47 | 2,459.34 |
| Reserves and Surplus | 973.14 | 1,975.07 | 2,383.61 | 2,391.97 |
| Total Borrowing | 200.00 |
Performance Indicators
| Debt/Equity | 1.41 |
| RoNW | 5.25% |
| P/BV | 9.67 |
Key Strengths
Customer Centricity: Go Digit prioritizes a positive customer experience. This is reflected in their high Net Promoter Scores (NPS) which indicate customer satisfaction. They offer customizable products and provide easy access to tools and self-service options.
Distribution Network: Go Digit has a well-developed distribution network that combines both digital and physical channels. They have partnerships with Point-of-Sale Persons (POSPs) across the country, along with a strong digital presence. This allows them to reach customers in various locations and cater to different preferences.
Product Innovation: Go Digit goes beyond traditional insurance products and offers innovative solutions. Their broad product portfolio caters to diverse customer needs, and they’ve shown a willingness to adapt and introduce new offerings.
Growth Potential: The Indian insurance market, particularly the non-life segment Go Digit operates in, is vastly underpenetrated compared to global averages. This presents a significant growth opportunity for the company.
Key Risks
Risks associated with economic conditions:
Downturns in the economy could negatively affect customer spending and lead to increased competition.
Risks associated with competition:
The company faces competition from other insurance platform providers, which could put pressure on prices and margins.
Profitability:
Go Digit hasn’t achieved profitability yet. This could be a concern for investors seeking companies with a proven track record of generating returns.
Risks associated with Regulation:
The insurance sector is subject to strict regulations, and any changes in regulatory policies could impact Go Digit’s business model or profitability.
