Re-filing IPO Papers With Sebi For Go Digit General Insurance


Re-filing IPO Papers With Sebi For Go Digit General Insurance

April 7, 2023: An update with the markets regulator on Thursday revealed that Go Digit General Insurance Ltd, a company backed by the Canadian Fairfax Group, has revised its preliminary IPO documents after making certain revisions to its employee stock appreciation rights programme.

This occurred when Sebi on January 30 returned Go Digit’s draught IPO (Initial Public Offering) papers and requested that the business resubmit them with specific modifications.

The updated filings don’t impact the magnitude of the company’s IPO.

The planned initial public offering (IPO) of Go Digit consists of a new issue of equity shares valued at Rs 1,250 crore and an offer for sale (OFS) of 10.94 crore equity shares made by the company’s promoter, Go Digit Infoworks Services, and current shareholders.

It has been suggested that the proceeds from the new issue be used for general corporate objectives, increasing the company’s capital base, and maintaining solvency levels.

In order to generate money via an initial share offering, the business first filed the draught red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) in August 2022.

The employee stock appreciation rights scheme’s compliance requirements, however, were the main reason it was unsuccessful.

The insurance company had stated in a statement that the draught papers were “returned in accordance with Sebi’s ICDR (Issuance of Capital and Disclosure Requirements) rules, which exempts rights granted under Employee Stock Option Plans to subsist at the time of filing the draught prospectus, but does not similarly exempt Employee Stock Appreciation Rights.”

The business had previously said that it was considering changes to its employee equity appreciation rights programme and will soon submit a revised DRHP with Sebi.

According to the revised draught documents, Go Digit modified its employee stock appreciation rights programme in response to resolutions adopted by its board and shareholders on March 21 and March 27, respectively.

One of the company’s investors is star Anushka Sharma, who is married to cricketer Virat Kohli.

To fulfil the demands of the consumers, Go Digit provides a variety of insurance products, including liability insurance, health insurance, travel insurance, property insurance, and marine insurance.

One of the earliest non-life insurers in India, it has created application programming interface (API) interfaces with a number of channel partners.

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