SEBI Keeps GoDigit IPO in deep freeze

By News - Team

September 20, 2022

The Securities and Exchange Board of India (Sebi) has kept in’ suspension’ the proposed original Public Offering (IPO) of insurrect platform GoDigit, which operates the Digit Insurance brand. In August, the Fairfax Group- backed company filed draft documents for its IPO, looking to raise ₹1,250 crore from a fresh issue of shares and an offer for trade (OFS) of 109.4 million equity shares.

The capital requests controller said in an announcement on its website that the” allocation of compliances (has been) kept in latency.” It didn’t give farther details. According to Sebi, when there’s a probable cause for disquisition against the reality, the observation on the offer document filed by the issuer is kept in latency.

GoDigit, according to its draft prospectus, may also consider taking a pre-IPO placement of ₹ 250 crore before filing for its red- herring prospect. ICICI Securities NSE 0.47%, Morgan Stanley India Co, Axis Capital, Edelweiss Financial Services NSE 0.46%, HDFC Bank NSE 1.19% and IIFL Securities NSE 0.63% were the book directors for the IPO, the draft prospectus showed.

The company was looking to use the proceeds from the IPO to compound its capital base and maintain solvency situations. According to the draft documents, the company’s client base increased to 25.77 million in FY22 from 14.27 million in the time ago period. The group vended near to 7.76 million programs in FY22, compared to 5.55 million programs in FY21.

Total Means under operation shot up by nearly 68 annually to ₹ 9,393.87 crore in FY22. Net losses more than doubled to ₹295.86 crore in FY22 from a net loss of ₹122.76 crore in FY21. Total Earnings grew 70% to ₹ 3,840.96 crore in FY22 from ₹ 2,251.98 crore in the time- ago period.

About GoDigit (General Insurance Limited)

Insurance is complicated,

we’re here to simplify it.

Let’s talk about bread!

The way we know it today, sliced form, was not how it was a century ago. It had to be knifed, torn, or bitten-off from the loaf itself. Complicated, right? Especially now that you can easily toast a slice. Pop, so simple! But why are we talking about bread? Because insurance today is very much like that unsliced loaf of bread; cumbersome and unnecessarily complicated. Most consumers have a lack of understanding of what product is right for them, and claim settlement is a long, tedious process where paperwork and fine print make the entire experience unpleasant. Aargh, someone get us a knife here! We’re simplifying insurance products so that even a 15-year-old can comprehend them.

We believe this can be changed; the way insurance products are viewed, purchased, and claimed. Simply put, we are here ‘To Make Insurance Simple.’ With that as our mission, we are reimagining products, and redesigning processes. We are going back to the basics and building simple and transparent insurance solutions, that matter to people.

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