Indian insurer Go Digit raises $141m from anchor investors ahead of IPO

Indian insurer Go Digit raises $141m from anchor investors ahead of IPO

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Indian insurer Go Digit has raised Rs 1,176 crore ($141 million) from anchor investors, including Fidelity Funds, Goldman Sachs and Abu Dhabi Investment Authority (ADIA), ahead of its initial public offering (IPO).

According to a stock exchange filing, more than 56 anchor investors were allotted 4.3 crore shares for Rs 272 per share before the IPO was opened for subscription by retail investors on Wednesday. Other anchor investors include Morgan Stanley, Mirae Asset Management, Steadview Capital, Bay Pond, SBI, Axis, Tata, and ICICI.

Founded in 2017, Go Digit first filed its draft red herring prospectus (DRHP) in August 2022, but its plans were halted twice by the Securities and Exchange Board of India (Sebi), because of certain compliance issues related to share issuances, according to media reports.

The firm, which counts Canadian billionaire Prem Watsa’s Fairfax Group and A91 Partners among its backers, was last valued at $3.5 billion. It sells health, auto, travel, and accidental insurance.

Go Digit has fixed a price band of Rs 258-278 for its IPO and expects to raise $313 million (Rs 2616 crore) at the upper end of the range. About 75% of the offer is reserved for QIB investors, 15% for non-institutional investors, and 10% for retail investors.

According to media reports, the company is seeking a valuation of $3 billion from the IPO, a 25% discount to its last known private market valuation.

Other companies that are expected to go public in India this year include Ola Electric, Swiggy and OYO.

Edited by: Deepshikha Monga

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