Go Digit General Insurance IPO: GMP doubles in two days; allotment likely today

Go Digit General Insurance has seen a mild uptick in its grey market premium (GMP) in the last few days, since the closure of the issue. The latest signals from the unofficial market, if they continue to remain stable, hint towards a mild listing pop of investors after a muted bidding for the issue.
 

Pune-based Go Digit General Insurance is scheduled to finalize the basis of allotment of its shares most likely on Tuesday, May 21. Bidders will get the messages, alerts or emails for debit of their funds or revocations of their IPO mandate by Wednesday, after an extended weekend. Indian stock markets were shut on Monday on the account of general elections.
 

Last heard, grey market premium of Go Digit General Insurance was commanding a premium of Rs 25-30 per share, suggesting a listing pop of 10-12 per cent for the investors. However, the GMP stood at Rs 10-15 as of closure of the bidding, while it was around Rs 65-70, before the bidding kicked off.
 

Go Digit General Insurance's IPO ran between May 15 and May 17, which was sold in the price band of Rs 258-272 per share with a lot size of 55 shares. The company raised a total of Rs 2,614.65 crore through 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 overall subscribed 9.60 times. On an individual basis, quota for qualified institutional bidders (QIBs) was booked 12.56 times. The quota for non-institutional investors was subscribed 7.24 times, and the portion reserved for retail investors was subscribed 4.27 times during the three-day bidding process.
 

Backed by Prem Watsa's Fairfax Group, Go Digit General Insurance is a general insurance provider, offering motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance and other insurance products. Customers can customize their insurance to meet their needs.
 

Brokerage firms are mostly positive on the issue suggesting investors subscribe to it on the back of companies improving financial, under penetration of insurance products, rising market share and technological advancement. However, they see regulatory obligations, rich valuations and loss-making nature of business as the key risks for the business.
 

ICICI Securities, Morgan Stanley India Company, Axis Capital, Nuvama Wealth Management, HDFC Bank and IIFL Securities are the book running lead managers of the Go Digit IPO, while Link Intime India is the registrar for the issue. Shares of the company shall be listed at both BSE and NSE, with Thursday May 23 as the tentative date of listing.
 

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.
 

The registrar is a Sebi-registered entity, qualified to act as such and which electronically processes all applications and carries out the allotment process, as per 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.
 

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.
 

 

 

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.