Logo of digit depicted
Source: Entrackr

Go Digit, backed by Fairfax and Virat Kohli, files for IPO
The insurance company aims to raise funds.

Image depicting Virat Kohli wearing a Digit T-shirt
Go Digit which is backed by Fairfax and Virat Kohli, files for IPO.
Source: Business Today India

Go Digit, which is backed by Indian cricketer Virat Kohli and Fairfax Group of Canadian billionaire Prem Watsa, filed for an initial public offering this week. It went on to file the required paperwork on August 16 with the market regulator SEBI- Securities Exchange of India for the IPO for the generation of funds.

The IPO of Digit Insurance comprises a new issue of shares coming to about Rs. 1,250 crore. At the same time, shareholders already present would let go of a maximum of 109.4 million shares, according to the DRHP- draft red red herring prospectus. Moreover, the firm stated that it might be selling shares roughly worth $250 crore in a pre-IPO placement. In case of this, share sale in this IPO issue would be much lesser than anticipated.

The shareholders of the entire conglomerate include Go Digit Infoworks Services Private Limited, Nikita Mihir Vakharia, along with Mihir Atul Vakharia. Additionally, Nikunj Hirendra Shah, along with Sohag Hirendra Shah, as well as Subramaniam Vasudevan, and Shanti Subramaniam are its promoters, and ones selling.

The company’s plan for this:

One of the proposals of Digit include the use of the net proceeds to boost its balance sheet and facilitate cash reserve that the regulator needs for such insurance firms. This one was founded in the year 2017, and has been attempting to profit through the untouched general insurance market of the country.

Along with it, the company is further trying to benefit from the requirement of the customers for an enhanced customer experience such simpler settlement of claims. The founder of the company, Kamlesh Goyal is adequately familiar with the insurance sector owing to his tenure at Allianz of Germany, and was the boss of its joint venture with India.

One of its most prominent investors include Indian cricketer Virat Kohli, who is also its brand ambassador. Digit’s promoters include Go Digit Infoworks Services Private Limited, Kamlesh Goyal. Along with it, Oben Ventures LLP and Fairfax holdings’s extension FAL Corporation. The net loss suffered by the firm went all the way to Rs. 295 crore the previous financial year. This was as opposed to the Rs. 122 in the one before that.

The regulator often needs firms in the industry to be a minimum of five years old prior to going public, which Go Digit would complete by the next month. Its plans include raising funds through the offer of new shares, in partnership  with Fairfax, with its biggest shareholder with around 30%, cuttings its share.