Fairfax-backed Go Digit receives Sebi's approval to raise funds via IPO
Go Digit General Insurance Ltd, a firm backed by Canada-based Fairfax Group, has received Sebi’s go-ahead to raise funds through an initial public offering (IPO), an update with the regulator showed on Monday. The approval came after the company’s preliminary IPO papers were first filed in August 2022.
Go Digit’s proposed IPO comprises fresh issuance of shares worth Rs 1,250 crore and an Offer For Sale (OFS) of 10.94 crore shares by promoter Go Digit Infoworks Services and existing shareholders, according to the draft red herring prospectus (DRHP). Proceeds from the fresh issuance would be utilised for the augmentation of the company’s capital base and maintenance of solvency levels and for general corporate purposes.
The company had first filed the DRHP with Sebi in August 2022 to raise funds through an initial share sale. However, it was thwarted primarily due to certain compliance requirements pertaining to the employee stock appreciation rights scheme. Sebi returned Go Digit’s draft IPO papers on January 30, 2023 and asked the company to refile the documents with certain updates. Following this, the company again filed the preliminary IPO papers with Sebi in April 2023.
