29th May 2024

Fairfax-backed Digit Insurance coverage has raised Rs 1,176.5 crore from anchor buyers a day forward of its preliminary public providing (IPO), which opened Wednesday.

Constancy, Goldman Sachs, Abu Dhabi Funding Authority, Steadview Capital are among the many worldwide buyers who took half within the funding train. Giant home mutual funds similar to SBI Mutual Fund, ICICI Prudential Mutual Fund, Axis Mutual Fund additionally participated, Digit Insurance coverage mentioned in a press release late Tuesday. Total, round 43.2 million fairness shares have been allotted to the anchor buyers at Rs 272 apiece.

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Digit Insurance coverage has set a value band of Rs 258 to Rs 272 per share for the IPO, looking for a valuation of $3-3.2 billion. GoDigit Infoworks, which owns a 80.5% stake and is the promoter entity within the firm, is promoting round 54 million shares, with some small particular person shareholders additionally paring their holdings within the IPO.
About 75% of the shares have been reserved for certified institutional buyers, 15% for non-institutional buyers and 10% for retail buyers.

Regardless of being valued at $four billion in its final personal fundraise in 2022, Digit priced its IPO shares at a 25% low cost. This cautious technique seemingly thought of the market efficiency of different startups after going public.

“The valuation is predicated on suggestions which we’ve got acquired and we additionally wish to hold one thing on the desk for our buyers,” Kamesh Goyal, founder, Digit Insurance coverage mentioned earlier this week at a pre-IPO meet in Bengaluru.

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Based in 2017, Digit is the primary new era insurance coverage firm, which goes public. A profitable end result will give a significant enhance to the fledgling insurtech sector within the nation.On Monday, Goyal instructed ET that he’s betting on profitability, quick development and robust market alternative normally insurance coverage as components which can make the corporate engaging for retail buyers.

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