Digit Insurance IPO: Indian insurance firm Digit Insurance, backed by Canadian billionaire Prem Wat’s Fairfax Group, is looking to launch its initial public offering, or IPO, soon, according to a report. According to the report, Digit Insurance IPO Will try to raise $500 million, though its initial stake sale has been volatile since the beginning of this year, regardless of the market. Digit Insurance has Indian cricket icon Virat Kohli as its investor and brand ambassador. The company is expected to file its IPO Draft paper later this year.
Digit Insurance IPO: All you need to know
While the exact dates of the Digit Insurance IPO are not known, sources familiar with the development told Reuters that the company plans to file its draft document to markets regulator Sebi by September this year and the list by January next year. Kamesh Goyal, Founder of Digit Insurance Limited, is a veteran of the insurance industry. He has many feathers in his crown as he has worked with Germany’s Allianz and headed its Indian joint venture.
According to a Reuters report quoting unnamed sources, Digit has appointed Morgan Stanley and Indian investment bank ICICI Securities as bookrunners for the deal. However, none of the company representatives have agreed to comment anything on the development. “Digit plans to raise funds by offering new shares with its largest shareholder, Fairfax, which holds about 30%,” sources told Reuters.
As per SEBI norms, Digit will complete its five years as a company before going public. Digit’s IPO is likely to be listed in January. The company’s revenue grew 62 percent to about $675 million last fiscal year, trailing the industry’s 11 percent growth. Digit Insurance reported a net loss of $7.8 million in 2020/21 on revenue of $309 million, but its latest profit or loss could not be immediately ascertained, Reuters reported that day.
Digit intends to do business in India under the general insurance market, “the need of the market with users for better customer experience like easy claim settlement”. As of last month, when the company completed a tranche of funding, it was valued at around $4 billion. “It has raised more than $400 million to date from Sequoia Capital, A91 Partners and Fairing Capital, in addition to Fairfax,” according to the report.
However, the Digit Insurance IPO plan comes at a time when the Indian stock market has been volatile for months. Earlier this month, India’s largest insurance company LIC listed on the stock exchanges at a discount with its inability to up its game further. LIC’s IPO did not yield target valuation. On the other hand, startups’ IPOs India The markets have also not performed well due to negative investor sentiment. According to experts, the performance of Digit IPO will depend on how much the company values its shares.
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