Go Digit General Insurance is likely to announce the allotment of its shares on May 21. Bidders will get messages, alerts or emails regarding the debit of funds or revocations of their IPO mandate over the extended weekend or on May 21 as the market will be shut on May 20 on the account of voting in Maharashtra.
Pune-based Go Digit General Insurance sold its IPO in the price band of Rs 258-272 per share with a lot size of 55 shares, which was open for bidding between May 15 and May 17. The company raised a total of Rs 2,614.65 crore from its primary offering, which included a fresh share sale of Rs 1,125 crore and offer-for-sale (OFS) of up to 5,47,66,392 equity shares.
The issue was subscribed to 9.60 times. On an individual basis, the quota for qualified institutional bidders (QIBs) was booked 12.56 times, while the quota for non-institutional investors was subscribed 7.24 times. The portion reserved for retail investors was subscribed 4.27 times during the three-day bidding process.
The grey market premium (GMP) of Go Digit General Insurance saw a steep correction after a muted bidding for the issue. The company was commanding a premium of Rs 10-15 per share, suggesting a listing gain of 4-6 percent for the investors. However, it was around Rs 65-70, before the bidding kicked off.
Backed by Prem Watsa’s Fairfax Group, Go Digit General Insurance offers products like motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance and other products. Customers also have the option to customise their coverage according to their needs.
Brokerage firms are mostly positive on the issue and suggest that investors subscribe to it given the company’s improving financials, under penetration of insurance products, rising market share and technological advancement.
However, they see regulatory obligations, rich valuations and the loss-making nature of business as the key risks.
ICICI Securities, Morgan Stanley India Company, Axis Capital, Nuvama Wealth Management, HDFC Bank and IIFL Securities are the lead book-running managers of the Go Digit IPO, while Link Intime India is the registrar for the issue.
Shares of the company are likely to be listed on both BSE and NSE on May 23.
How to check allotment status
Investors, who had bid for the issue, can check the allotment status on the Bombay Stock Exchange (BSE) website:
1) Visit https://www.bseindia.com/investors/appli_check.aspx
2) Under the issue type, click Equity
3) Under the issue name, select Go Digit General Insurance Limited in the dropbox
4) Write the application number
5) Add the PAN card ID
6) Click on 'I am not a Robot' and hit submit
Investors can also check the allotment status on the online portal of Link Intime India (https://linkintime.co.in/MIPO/Ipoallotment.html), the registrar to the issue.
1) Go to the web portal of Link Intime Limited
2) Select the IPO in dropbox whose name will be populated only if the allotment is finalized
3) You may be required to select either one of the three modes: Application number, Demat Account
number, or PAN ID
4) In application type, select between ASBA and non-ASBA
5) Enter the details of the mode you selected in Step 2
6) For security purposes, fill the captcha accurately
7) Hit submit.
The registrar is a SEBI-registered entity, qualified to act as such and which electronically processes all applications and carries out the allotment process, according to the prospectus. It is responsible for complying with the timelines for updating the electronic credit of shares to successful applicants, dispatching and uploading refunds, and attending to all investor-related queries post-issue.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.