Sebi clears Digit's Rs 3.5k crore IPO plan after nearly 2 years

MUMBAI: Markets regulator Sebi has given the go ahead for a Rs 3,500-crore IPO by Go Digit General Insurance, promoted by Canadian billionaire Prem Watsa's Fairfax group and industry veteran Kamesh Goyal, according to people familiar with the matter.
The company had filed for an IPO in August 2022. However, Sebi had kept the issue in abeyance after raising queries on the company's employee stock appreciation plan.Sebi's objection led to the company refiling for its Rs 3,500 crore IPO. The company was valued at $3.5 billion in 2021, when it raised $200 million.

The company had gross written premium of Rs 7,317 crore as of Dec 2023. According to regulatory filings, Go Digit recorded a premium income of Rs 6,645 crore up to Jan 2024 in FY24, a 32% growth over the same period last year. The company has a market share of 2.76% in the non-life sector.
According to filings, Go Digit recorded a premium income of Rs 6,645 crore up to Jan 2024 in FY24, a 32% growth over the same period last year. The company has a market share of 2.8% in the non-life sector.

Sebi had queries on the company's Go digit - Employee Stock Appreciation Rights Plan, 2018, which was subsequently replaced with an Employee Stock Option Plan by the company last year. The stock appreciation plan linked employee bonuses to the performance of the company's shares, which is not permitted.