About the Company:
Go Digit General Insurance Ltd is one of the leading digital full stack non-life insurance companies, leveraging our technology to power what we believe to be an innovative approach to product design, distribution and customer experience for non-life insurance products.
Company offers motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance and other insurance products, which the customers can customize to meet his or her needs.
Company through innovation and transparency delivers a seamless customer experience journey in a significant financial product an individual would purchase in their lifetime.
Company is one of the leading digital full stack insurance companies, leveraging our technology to power what we believe to be an innovative approach to product design, distribution and customer experience for non-life insurance products.
Difference between Full-Stack Insurers & Digital Full Stack Insurers.
Full-Stack Insurers are insurance firms that are fully licensed and controlled by a regulatory authority and perform sourcing, underwriting and servicing all in-house.
Digital full stack insurers are insurance manufacturing companies that focus on integrating technology in their operations.
Company’s Mission:
Company’s aim is to make insurance products so simple that even a 15-year old can understand it.
Incorporated on December 7, 2016, Company began its journey to change the way non-life insurance products are understood and experienced by consumers and distributors in India.
Company believes that by simplifying insurance, it can establish trust and create meaningful relationships with our customers and distribution partners.
Company is a New Age Insurance Company:
At Digit, Company believes that it is changing insurance products and processes by:
- Offering relevant, easy-to-understand products, as well as additional coverage options that customers can select themselves to customize their insurance plans;
- Creating simple documentation written in clear, “jargon-free” English that, for the majority of our products, is accompanied by summaries that explain coverage in a “nut-shell”; and
- Developing straightforward, paperless processes supported by technology developed in-house, to provide an efficient processing experience for our customers and distributors.
Company’s Insurance Products:
- Motor Insurance.
- Health Insurance.
- Property and Engineering Insurance.
- Travel Insurance.
- Personal Accident Insurance.
- Liability Insurance.
Company Issues Insurance Policy in Simple Language, which can be Understood by Anyone:
Company is focused on simplifying the insurance documentation and have taken pioneer innovations to do so.
Company’s aim is to ensure that the language of the insurance contract is understandable to all, including a 15 year old. Insurance policy documents are typically filled with jargons and are considered complex and may not be fully understood by policyholders.
In response to this phenomenon, Company conducted research with 8 to 15-year-old kids where they were asked to read and assess the readability of our policy documents with an aim to further simplify the documents.
Company found that the 15-year-olds were able to understand and comprehend our policy documents sufficiently well. Therefore, we believe that even an adult can understand the contents of our policy documents, given the language of the policy documents are so simplified that even 15 year-old children can understand them.
Comparison between Digital Full Stack Insurers.
Company’s Key Performance Indicators:
Company’s Distribution Network:
As of December 31, 2023, Company maintains a broad distribution footprint across 24 of the 36 states and union territories in India.
As of December 31, 2023, Company had relationships with approximately 61,972 Key Distribution Partners, including approximately 58,532 POSPs, as well as individual agents, corporate agents, brokers and others.
Management Team:
- Jasleen Kohli (Designation: Managing Director and Chief Executive Officer)
- Kamesh Goyal (Designation: Non-Executive Chairman)
Objectives of the Issue:
Offer For Sale: (Rs.1490 cr)
- Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to their respective portion of proceeds of the Offer for Sale.
Fresh Issue: (Rs.1125 cr)
- Company proposes to utilize the Net Proceeds towards maintenance of our solvency ratio.
Positives for the Company.
Efficient, scalable operating platform.
Company’s approach to distribution is aligned with premium generation, while our focus on technology and straightforward, streamlined processes contributes to a scalable and lean business model. Our focus on supporting all our partners through the use of technology allows us to onboard and work with them in a cost-efficient manner, reducing the need for substantial operations to support our distribution partners.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 31st Dec 23 |
|---|---|---|---|---|
| Revenue | (-118.5) | (-293.6) | 39.1 | 130.8 |
| Net Profit | (-122.7) | (-295.8) | 35.5 | 129.0 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Go Digit General Insurance Ltd | 10 | 0.40 | 680 | 1.53% | 26.61 |
| New India Assurance Company Ltd | 5 | 6.36 | 38.47 | 5.13% | 125.64 |
| Star Health and Allied Insurance Company Ltd | 10 | 10.41 | 53.79 | 11.39% | 93.35 |
| ICICI Lombard Insurance Ltd | 10 | 35.16 | 48.14 | 16.64% | 211.6 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 15th May 2024 |
| Issue Closes on | 17th May 2024 |
| Issue Price | Rs.258 -272 |
| Face Value | Rs.10 |
| Retail Category Allocation | 10% |
| Minimum Lot | 55 Shares |
| Minimum Investment | Rs.14,960 |
| Issue Constitutes | 10.48% |
| Issue Size | Rs. 2615 cr ($ 315 million) |
| Market Cap | Rs.24950 cr ($ 3 billion) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 4,13,60,294 (Rs.1125 cr) |
| Equity Shares Offered (OFS) | 5,47,66,392 (Rs.1490 cr) |
| Total Equity Shares Offered (Fresh + OFS) | 9,61,26,686 (Rs.2615 cr) |
| Equity Shares Prior to the Issue | 87,58,42,046 |
| Equity Shares after the Issue | 91,72,02,340 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 21st May 2024 |
| Initiation of Refunds | on or Before 22nd May 2024 |
| Credit of Equity Shares: | on or Before 22nd May 2024 |
| Listing Date: | on or Before 23rd May 2024 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 0.40 | 680 | 1.53% | 26.20 |
Also Read: Complete List of NSE/BSE Holidays List>>
| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| Go Digit General Insurance Ltd stands at the forefront of digital full stack non-life insurance companies, revolutionizing product design, distribution, and customer experience through cutting-edge technology. Company’s innovative approach caters to diverse needs with customizable motor, health, travel, property, marine, liability, and other insurance products.
Company’s product lineup includes Motor Insurance, Health Insurance, Property and Engineering Insurance, Travel Insurance, Personal Accident Insurance, and Liability Insurance. Leveraging an efficient and scalable operating platform, company ensures seamless transactions and prompt services for customers. Only risk-taking investors with a long-term perspective should apply in this IPO. |
| Company Contact Info: |
|---|
| Go Digit General Insurance Ltd Atlantis, 95, 4th B Cross Road, Koramangala Industrial Layout, 5th Block, Bengaluru 560095. Karnataka, India. Telephone: +91 20 67495400 Email: cs@godigit.com Website: https://www.godigit.com |
| Registrar to the Issue: |
|---|
| Link Intime India Private Ltd C-101, 1st Floor, 247 Park L.B.S. Marg Vikhroli West, Mumbai 400 083, Maharashtra, India Telephone: +91 810 811 4949 Email: godigit.ipo@linkintime.co.in Website: www.linkintime.co.in |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/IPO_Allotment_Check |
| Find the List of Upcoming IPOs in India: |
|---|
Upcoming IPOs in India (Click on the below Link)https://www.marketsguruji.com/upcoming-ipos-in-india/ |
