Go Digit General Insurance Limited, a company backed by Canada-based Fairfax Group, is preparing to launch its initial public offering (IPO) on May 15. According to the IPO document, the IPO will open for subscription from May 15 to 17. Anchor (large) investors will be able to bid on May 14. According to Bhasha news, Go Digit’s proposed IPO has fresh shares worth Rs 1,125 crore. Apart from this, an offer for sale (OFS) of 5.47 crore equity shares by the promoter Go Digit Infoworks Services and existing shareholders is also included.
The company has 83.3 percent stake
According to the news, Go Digit Infoworks Services currently holds 83.3 percent stake in the company. Cricketer Virat Kohli and his wife and actress Anushka Sharma are also among the investors of this company. They are not selling any shares in the IPO. The company had received approval from the Securities and Exchange Board of India to launch an IPO in March. The insurance company involved a fresh issue of shares worth Rs 1,125 crore and an offer for sale (OFS) of 5,47,66,392 equity shares by its promoters and existing shareholders.
The company was fined
Insurance Regulatory and Development Authority of India IRDAI on May 4 imposed a fine of Rs 1 crore on the company for not disclosing changes in the conversion ratio of compulsorily convertible preference shares issued by its parent company. Let us tell you, launched in the year 2016, Pune-based Go Digit General Insurance Company provides car, travel, mobile and jewelery insurance.
There is also discussion that some shares may be reserved in Go Digit for eligible employees of the company. Of the net offer, 75 per cent shares will be reserved for qualified institutional bidders, while 15 per cent shares will be allotted to non-institutional investors. Only 10 percent shares will be reserved for retail investors.
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