Go Digit General Insurance’s IPO shares are set to enter the stock market today, with expectations of a flat listing. The grey market premium for the shares has taken a sudden turn, indicating that the stock may not see significant gains on its debut on Dalal Street. Initially, the grey market premium for Go Digit’s shares was at Rs 8-10, suggesting a potential 3% increase above the issue price of Rs 272 per share. However, just hours before listing, the premium dropped to Rs 30-32. Analysts predict that the stock may list at around Rs 300 per share, indicating a 10% upside compared to the issue price. Shreyansh V Shah, a Research Analyst at StoxBox, advises investors to hold the stock for the long term.
Go Digit General Insurance, based in Pune, recently completed its initial public offering (IPO) with a price range of Rs 258-272 per share and a lot size of 55 shares. The IPO was available for subscription from May 15 to May 17. In total, the new age general insurer raised Rs 2,614.65 crore through its primary offering. This included a fresh share sale of Rs 1,125 crore and an offer-for-sale (OFS) of up to 5,47,66,392 equity shares.
The IPO was oversubscribed by 9.60 times. Qualified institutional bidders (QIBs) subscribed to their quota 12.56 times, while non-institutional investors subscribed 7.24 times. Retail investors subscribed to their portion 4.27 times during the three-day bidding process.
According to Shivani Nyati, the Head of Wealth at Swastika Investmart, the Go Digit General Insurance IPO initially generated interest but lost momentum due to market volatility and a moderate subscription of 9 times. Nyati stated that while there is a possibility of a decent listing for Go Digit, the enthusiasm has diminished compared to earlier expectations.
Go Digit General Insurance, supported by Prem Watsa’s Fairfax Group, offers a range of insurance products including motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and more. Customers have the flexibility to customize their insurance coverage according to their individual needs.
The book running lead managers for the Go Digit IPO include Morgan Stanley India Company, Axis Capital, Nuvama Wealth Management, HDFC Bank, and IIFL Securities. Link Intime India is the registrar for the issue.