The listing fell short of expectations as the grey market trends suggested a potential gain of around 10%.
Analysts said Go Digit’s position as the fastest-growing private non-life insurer by GWP in India positions it for continued success in the dynamic insurance market. The company’s advanced technology platform and focus on innovation bode well for its future.
“Go Digit’s moderate listing necessitates a balanced approach from investors. While the company possesses strong long-term potential, careful consideration of the valuation and competitive landscape is crucial. Investors may hold their position by keeping a stoploss at the issue price,” said Shivani Nyati, Head of Wealth, Swastika Investmart.
Also Read: Virat Kohli-backed Go Digit debuts at 5% premium over IPO priceAhead of the issue opening, the firm raised about Rs 1,176 crore in the anchor round, where Fidelity Investments, Goldman Sachs, ADIA, and Custody Bank of Japan were among the investors.In 2020, cricketer Virat Kohli bought 2.66 lakh shares of the company for Rs 2 crore, while actress wife Anushka Sharma invested 50 lakh through a private placement.Ahead of the IPO, the promoter group, including Canada-based Fairfax, Kamesh Goyal, Go Digit Infoworks, and Oben Ventures, owned an 83.31% stake in the company.
Go Digit is a leading digital full-stack insurer and the fastest-growing private non-life insurer by GWP in India. They offer a simplified and customized customer experience, with focus on empowering their distribution partners.
In the 9 months ended December 2023, Go Digit’s net earned premium rose to Rs 5,115 crore vs Rs 3,767 crore in the corresponding period of the previous financial year. It reported a profit after tax of Rs 129 crore in the 9-month period vs Rs 10 crore in the first 9 months of FY23.
The PE ratio, based on the diluted EPS for 2023, at the upper range of the price band is 680x as compared to the average industry peer group of 46.13x.
ICICI Securities, Morgan Stanley India, Axis Capital, Edelweiss Financial Services, HDFC Bank, and IIFL Securities acted as the book-running lead managers for the IPO.