InvestorQ : Why has SEBI put the IPO of Go Digit Insurance in abeyance?
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Why has SEBI put the IPO of Go Digit Insurance in abeyance?

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Rashi Mehra answered.
2 weeks ago
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SEBI had decided to put in abeyance the IPO of Go Digit General Insurance, an insurance that originates and also markets insurance products. The venture is backed by high profile investors like Virat Kohli and Anushka Sharma. Canada based Fairfax group, promoted by Prem Watsa, is also a major investor in Go Digit Insurance. Other banks have also shown interest in the company. HDFC Bank has already taken a stake of 9.94% in Go Digit Insurance while Axis Bank is also looking to buy a stake in the insurance company.

It may be recollected that Go Digit had filed its DRHP with SEBI in mid-August 2022 for a fresh issue of Rs1,250 crore plus an OFS of 10.94 crore shares. SEBI normally gives its observations in one month. In this case, SEBI has just mentioned on the website that it has put the issue in abeyance, while no resigns have been assigned. Normally, an IPO is put in abeyance if SEBI has some questions either on the business side or on the regulatory aspects of the IPO or if it feels that further internal consultation is required.

Go Digit has positioned itself as a unique proposition in the Indian fintech market. It currently offers motor, health, travel, property, marine and liability insurance products to customers. Incidentally, Go Digit is also the first non-life insurer in India to be fully operated on the cloud, which is both scalable and cost efficient in the long run. Gross written premiums (GWP) of the insurer for the fiscal year FY22 stood at Rs5,268 crore.

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