Last update: September 19, 2022, 8:26 PM (IST)
Go Digit filed its preliminary IPO documents with the capital markets regulator on August 17.
Capital markets regulator Sebi has put “on hold” the proposed initial share sale of Go Digit General Insurance Ltd., backed by Canada-based Fairfax Group.
New Delhi: Capital markets regulator Sebi has put “on hold” the initial share sale offer of Go Digit General Insurance Ltd., backed by Canada-based Fairfax Group. However, the Securities and Exchange Board of India (Sebi) did not clarify further.
Go Digit filed its preliminary IPO documents with the capital markets regulator on August 17. Cricketer Virat Kohli and his wife Anushka Sharma are among the company's investors.
According to the draft document, the company's proposed initial public offering (IPO) consists of fresh issue of shares worth Rs 1,250 crore and proposed sale of 10.94 crore shares by promoters and existing shareholders. The proceeds from the new issuance were to be utilized to expand the Company's capital base, maintain solvency levels and for general corporate purposes.
Without giving a reason, Sebi said “issuance of observation letter has been put on hold” with regard to Go Digit's IPO, according to an update on the regulator's website on Monday. Information was updated on September 16. Sebi's issuance of an observation report signals the IPO's progress and the regulator usually provides its observations on the IPO filings within 30 days.
Go Digit offers auto insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and other insurance products. The company is one of India's first non-life insurers to operate completely in the cloud and has developed application programming interface (API) integrations with multiple channel partners.
The Bengaluru-based company has the track record of growing its Gross Written Premium (GWP) at a compound annual growth rate (CAGR) for fiscal years 2022, 2021 and 2020. 53% from fiscal year 2020 to fiscal year 2022. ICICI Securities, Morgan Stanley India Company, Axis Capital, Edelweiss Financial Services, HDFC Bank and IIFL Securities are acting as lead managers for the matter.
Last month, private sector lender HDFC Bank announced that it would acquire a 9.94% stake in Go Digit's life insurance venture.
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