Market regulator Securities and Exchange Board of India (SEBI), recently approved three companies for the IPO. Go Digit’s initial public offering (IPO) is one of them. It is a company backed by the cricket star Virat Kohli and his wife, Bollywood actress Anushka Sharma. Go Digit IPO faced many hurdles over compliance issues which resulted which was delaying the IPO approval and on 4 March, it got approved by the SEBI.
Go Digit is a digital full-stack insurance company, offering a range of general insurance products such as health insurance, motor insurance, travel insurance, and more. It is one of the fastest-growing insurers in the market. It is in the top 10 private general insurers by GWP.
The company hold a GWP of ₹52.68 billion, ₹32.43 billion, and ₹22.52 billion in 2022, 2021, and 2020. They hold a strong position in the solvency ratio of 2.01 times as of March 31, 2022. Now, the company is releasing a fresh issue of equity for the private market. They are expecting to release a fresh issue of equity shares up to Rs.1250 crores and an offer for sale of up to 10.9 crore equity shares.
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GoDigit Financial Snapshot:-
March 2020
- Revenue (₹ Crores): 1419.2
- PAT (₹ Crores): – 175.24
- EPS (₹): – 2.41
March 2021
- Revenue (₹ Crores): 2251.98
- PAT (₹ Crores): – 122.76
- EPS (₹): – 1.50
March 2022
- Revenue (₹ Crores): 3840.96
- PAT (₹ Crores): – 295.86
- EPS (₹): – 3.55
However, there is no official update in the market about the Go Digit IPO Date, Price Band, etc. Hopefully, they will release all details soon, if they already get approval from SEBI.
Want To Invest In Go Digit IPO?
If you are thinking of investing on the Go Digit IPO, here are some steps you can consider if you’re interested in investing-
- Research about the company: Recognise the market position, growth potential, financial performance, and business model of Go Digit. It is important to do this before investing money in it. Examine variables like market share, profitability, revenue growth, and any recent changes in the insurance sector that may have an impact on the industry in the future.
- Read the Prospectus: As Go Digit has decided to go public, they will publish an initial public offering (IPO) prospectus that includes comprehensive details about the firm, such as its financials, management roster, business plan, and risk considerations in some time. Wait for a while. To ensure you make an informed choice, please make sure you read this paper completely.
- Speak with a Financial Consultant: To receive individualised advice based on your investment horizon, risk tolerance, and financial objectives, think about speaking with a financial advisor or investment professional. They are professional and can guide you better. They can assist you in determining whether the Go Digit IPO is a good fit for your entire financial plan or not.
- Assess Valuation: Determine whether the Go Digit IPO is fairly priced in comparison to its insurance industry peers by assessing Go Digit’s valuation measures. Carefully check the price-to-earnings ratio (P/E ratio), price-to-sales ratio (P/S ratio), and enterprise value-to-revenue ratio (EV/Revenue).
- Monitor market conditions: Keep an eye on broader market conditions and investor sentiment, etc which affect the IPO value and markley. Determine whether there is a strong demand for insurance equities and whether the market is conducive to IPO investments.
- Allocate Capital: Decide how much amount of money you want to invest in Go Digit’s initial public offering. Think about distributing your investments across several assets to diversify your portfolio. To effectively control risk, think about diversifying your portfolio by distributing your investments over several asset classes and industries.
- Buy Shares: Use your Demat Account or Brokerage account to place your orders of shares as soon as Go Digit’s IPO is available for subscription. To participate in the IPO, make sure you meet all eligibility requirements and follow your broker’s subscription instructions.
- Track Post-IPO Performance: Keep a careful eye on Go Digit’s post-IPO performance once it has been listed on the stock exchange. Keep an eye on the trading volume, price changes of the stock, and any company-related news or developments. Periodically review your investment theory and make necessary adjustments to your holdings in light of shifting market conditions.