Go Digit IPO Day 2: Retail Portion Subscription At 1.86x, GMP Crashes

Go Digit IPO is set to raise ₹2,614.65 crore through a mix 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. The IPO opened for subscription on May 15 and will close on May 17. The price band for the Go Digit IPO is pegged at ₹258 to ₹272 per share, with a minimum lot size of 55 shares for retail investors.

Go Digit IPO Subscription Status

As of 10:59 am on Thursday, the Go Digit IPO has been subscribed 46%. The retail individual investors (RIIs) category has received bids for 1.78 crore shares, marking a subscription of 1.86 times. The non-institutional investors (NII) category has seen bids for 62.57 lakh shares, marking a subscription of 0.43 times. However, the Qualified Institutional Buyers (QIBs) category has not received any bids yet.

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.

Go Digit IPO GMP

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The Go Digit IPO GMP currently stands at ₹15, a significant drop from the ₹47 reported earlier when the IPO opened. Considering the upper price band of the IPO, the stock is expected to list at ₹287, indicating a potential gain of approximately 6% on listing. However, it is important to remember 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 plans 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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