Go Digit General Insurance files draft papers for IPO with Sebi

NEW DELHI: Digit Insurance, backed by Canadian billionaire Prem Watsa's Fairfax Group, has filed for an initial public offering, papers submitted to the market regulator showed on Tuesday, Reuters reported.

The insurance company intends to raise up to Rs 1,250 crore via the fresh issue and offer 109,445,561 shares in the offer for sale, shows data available on ICICI Securities' website.

The total IPO is likely to be worth Rs 3,500 crore ($440 million), according to a person with direct knowledge of the matter, said Reuters. Digit Insurance declined to comment on the IPO's size, it added.

Go Digit General Insurance is a digital full-stack insurance company. It offers motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance and other insurance products.

The company caters to approximately 82.9 per cent of the gross written premiums (GWP) written by digital full-stack insurance players at Rs 5,268 crore in FY22, making it the largest digital full-stack insurance player in India, according to the RedSeer Report.

As per the DRHP, selling holders in the OFS included Go Digit Infoworks Services (up to 109,434,783 shares), Nikita Mihir Vakharia, jointly with Mihir Atul Vakharia (up to 4,000 shares), Nikunj Hirendra Shah, jointly with Sohag Hirendra Shah (up to 3,778 shares) and Subramaniam Vasudevan, jointly with Shanti Subramaniam (up to 3,000 shares).

The insurance company grew at 52.9 per cent CAGR over FY20-22. With 2,568 employees as of March 31, 2022, and 1,936 employees as of March 31, 2021, its GWP per employee stood at Rs 2.34 crore FY22 compared with Rs 1.6-2.1 crore for non-life insurance companies in India.

The BRLMs of the issue include ICICI Securities, Morgan Stanley, Axis Capital, Edelweiss Financial Services, HDFC Bank, and IIFL Securities. Registrar to the offer is Link Intime India.