Digit IPO Closes With 9.6X Subscription, QIBs Place Maximum Bids

Insurtech unicorn Go Digit General Insurance’s (Digit) public issue was subscribed 9.6X on the final day for bidding on May 17. 

As per data available on the BSE, the startup’s public offer received bids for 50.76 Cr shares as against 5.28 Cr shares on offer. 

DIgit’s initial public offering (IPO) received the maximum interest from qualified institutional buyers (QIBs), with the portion reserved for them oversubscribed 12.56X. QIBs placed bids for 36.22 Cr shares as against 2.88 Cr shares reserved for them. 

Similarly, interest from non-institutional investors (NIIs) also picked up on the final day of the IPO. The quota for NIIs was oversubscribed 7.25X, receiving bids for 10.43 Cr shares as against 1.44 Cr shares reserved for them. 

Meanwhile, retail individual investors (RIIs) placed bids for 4.10 Cr shares against 96.12 Lakh shares on offer, resulting in a 4.27X subscription.

With the culmination of the IPO, shares of the company are set to be listed on the BSE and the NSE. 

The startup will be raising INR 2,614.6 Cr through the public offer at the upper end of the price band, set at INR 258-272. The public issue comprises a fresh issue of shares worth INR 1,125 Cr and an offer for sale (OFS) element of 5.47 Cr shares.

Earlier this week, Digit raised INR 1,176.6 Cr from anchor investors by allocating 4.32 Cr shares. 

The company plans to use the fresh proceeds from the IPO to maintain its solvency ratio in the financial year ending March 2025 (FY25).

With its listing, Digit will join the growing list of new-age tech startups that are listed on the bourses. Earlier this week, B2B travel portal Travel Boutique Online or TBO Tek listed on the at a premium of 55% to its issue price of INR 920. TAC Infosec and Trust Fintech also listed on the NSE’s SME platform earlier this year. 

Meanwhile, coworking startup Awfis’ IPO will open next week, while startups like Ola Electric, Unicommerce, and ixigo are awaiting a go-ahead from SEBI for their IPOs. 

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