Capital market regulator Sebi has given the green light to the initial public offerings (IPOs) of three companies, including the new age insurance company Go Digit, which is endorsed by star cricketer Virat Kohli.
Go Digit’s IPO faced several obstacles due to compliance issues, leading to delays in its approval for the public offering. Sebi raised concerns over share issuance, causing the draft offer document to be returned twice.
Go Digit, operating in the general insurance sector and supported by Canadian billionaire Prem Watsa’s Fairfax Group and A91 Partners, resubmitted its IPO papers to Sebi in March last year, which have now been approved by the regulator.
The IPO consists of a fresh issue of shares valued at Rs 1,250 crore ($152.1 million) and an offer for sale of 109.4 million shares, as outlined in the draft prospectus.
The insurance company intends to use the net proceeds to strengthen its capital base and maintain solvency levels.
Between 2018 and 2022, Go Digit incurred an underwriting loss of Rs 1,917 crore and generated an investment income of Rs 746 crore, resulting in a net operating loss of Rs 1,171 crore during this period. The company, in collaboration with the merchant bankers, may consider a pre-IPO placement of up to Rs 250 crore, potentially reducing the size of the fresh issue.
ICICI Securities, Morgan Stanley India, Axis Capital, Edelweiss Financial Services, HDFC Bank, and IIFL Securities are the book-running lead managers for the IPO.
Bengaluru-based Denta Water and Infra Solutions Limited, a seasoned player in the water engineering, procurement, and construction (EPC) services sector, has also received the final observation from Sebi. The company submitted preliminary IPO papers to Sebi on December 11, 2023.
The IPO, with a face value of Rs 10, comprises a fresh issue of up to 7.5 million equity shares with no offer for sale (OFS) component. The proceeds from the fresh issue, amounting to Rs 150 crore, will be utilized to meet working capital needs.
In addition, KRN Heat Exchanger and Refrigeration, which filed its draft papers in January of this year, has also been granted Sebi approval for an IPO. The IPO involves an entirely fresh issue of 1.93 crore equity shares.
