SEBI Puts Sequoia-Backed Go Digit General Insurance’s IPO In ‘Abeyance’
SEBI has kept insurtech startup Go Digit General Insurance’s proposed initial public offering (IPO) in ‘abeyance’.
In its document on ‘processing status of draft offer documents’, the markets regulator said, “Issuance of observations kept in abeyance.” However, it didn’t give any other clarification or reason.
In SEBI parlance, issuance of observations implies its go-ahead for an IPO. The Fairfax and Sequoia-backed startup filed its draft IPO papers on August 17.
As per the draft papers of Go Digit IPO, the proposed offering includes a fresh issue worth INR 1,250 Cr and an offer for sale (OFS) of 10.94 Cr equity shares from existing shareholders. The digital insurance provider plans to use the net proceeds from the offering for business expansion, increasing brand visibility in the insurance space, to increase its capital base, and to improve the solvency margin and solvency ratio.
ICICI Securities, Morgan Stanley, Edelweiss, Axis Capital, HDFC Bank, and IIFL Securities are the lead bookrunners for the IPO.
Some reports pegged the total size of the IPO at INR 5,000 Cr.
Go Digit, which is also backed by prominent names like Virat Kohli and Anushka Sharma, was planning for its IPO later this year or early 2023.
Founded in 2017 by Kamesh Goyal, Go Digit offers insurance policies across verticals such as health, property, motor vehicle, travel, and more. It claims to have served over 25 million customers as of March 31, 2022.
Leave a Reply