Go Digit IPO shares to make stock market debut today; another flat listing on the cards

Shares of Go Digit General Insurance are geared-up for its listing at the bourses today, that is, Thursday, May 23. However, the grey market premium (GMP) for the counter has taken sharp and sudden 'U-turn' and the current signals hint towards a flat listing on Dalal Street.
 

Last heard, shares of Go Digit General Insurance were commanding a grey market premium of Rs 8-10, suggesting listing gains of around 3 per cent to the investors above the issue price of Rs 272 apiece. However, the company's premium in the unofficial market stood at Rs 30-32 just few hours before its listing.
 

"We expect a substantial listing of the issue and shares to list at around Rs 300 per share compared to the issue price, implying an upside of about 10 per cent," said Shreyansh V Shah, Research Analyst at StoxBox. He also suggested investors to hold the stock for long term.
 

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. It issue was open between May 15 and May 17. The new age general insurer 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.
 

The Go Digit General Insurance IPO initially sparked interest but the GMP gradually declined on the back of market volatility and a relatively moderate subscription of 9 times, said Shivani Nyati, Head of Wealth at Swastika Investmart. "Overall, Go Digit's IPO presents a possibility of a decent listing, but with toned-down enthusiasm compared to earlier expectations," she said.
 

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.
 

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