Go Digit IPO Day 1: Retail Portion Oversubscribed, GMP Falls

Go Digit General Insurance IPO is aiming to raise ₹2,614.65 crore. The Go Digit IPO, which is a combination of a fresh issue of 4.14 crore shares aggregating to ₹1,125.00 crores and an offer for sale of 5.48 crore shares aggregating to ₹1,489.65 crores, opened for subscription on May 15 and will close on May 17. The IPO price band is set at ₹258 to ₹272 per share, with a minimum lot size of 55 shares for retail investors.

Go Digit IPO Subscription Status

As of 3:26 pm on Wednesday, the subscription status for Go Digit’s IPO stands at 10%. The retail individual investors (RIIs) category has seen a bid for 1.19 crore shares, marking a subscription of 1.24 times. The non-institutional investors (NII) category has received bids for 30.68 lakh shares, marking a subscription of 0.21 times. The Qualified Institutional Buyers (QIBs) category is yet to see any bids.

The IPO’s allocation structure reserves 30% of the shares for QIBs, 15% for NIIs, and 10% for RIIs, with the remaining 45% reserved for anchor investors.

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Go Digit IPO GMP

The Go Digit IPO GMP currently stands at ₹32. This is a steep decline from the ₹47 reported earlier in the day. Given the upper price band of the IPO, the stock is expected to list at ₹304, indicating a potential gain of approximately 11.76% on listing. However, it is crucial to note that while GMPs can provide some insight into market sentiment, they are not always a reliable predictor of a stock’s performance upon listing.

Go Digit IPO Details

Go Digit intends to use the net proceeds from the IPO for prepayment or scheduled repayment of existing borrowings, financing working capital requirements, and addressing general corporate purposes. Prior to the IPO launch, the company secured ₹1,176 crores from 56 anchor investors, including Fidelity, Abu Dhabi Investment Authority (ADIA), and hedge fund Bay Pond Partners. The shares are tentatively scheduled to be listed on both the BSE and NSE on May 23, 2024.

About Go Digit

Established in December 2016, Go Digit General Insurance Limited is an insurance provider offering a variety of products, including motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and other customizable insurance products. As of December 31, 2023, the company had about 61,972 partners, including 58,532 POSPs and other agents, and distribution centres in 24 states and union territories in India.

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