Go Digit General Insurance Limited IPO

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The company simplifies insurance through innovation and transparency, offering a seamless customer experience. As one of the leading digital full-stack insurers, they leverage technology for product design, distribution, and customer experience in non-life insurance. They offer various insurance products, including motor, health, travel, property, marine, and liability insurance, all customizable for customers.

Digital full-stack insurers like them handle sourcing, underwriting, and servicing in-house while integrating technology into every aspect of operations. They were the largest digital full-stack insurance player in India in 2023, holding a significant market share of approximately 82.5% (₹66.8 billion in GWPs) during the nine months ending December 31, 2023. Their focus on tech solutions has led us to be the fastest-growing private non-life insurer, with a 37.5% increase in GWP from FY 2022 to FY 2023, compared to the industry growth rate of 20.1%.

Since starting in 2017, they have served over 43.26 million customers across various insurance products, maintaining a high level of customer satisfaction with a Google rating of 4.7/5 and a Facebook rating of 4.9/5. Despite rapid growth, they recognize that their future results may differ due to changing market conditions. Nonetheless, their strong track record of innovation positions us well for continued success.

Objects of the Go Digit General Insurance Limited IPO:

The Company proposes to utilise the Net Proceeds towards the following objects i. To undertake its existing business activities; and ii. To undertake the activities proposed to be funded from the Net Proceeds. Further, the Company expects to receive the benefits of listing the Equity Shares on the Stock Exchanges, which, the company believes, will enhance the visibility and its brand image among its existing and potential customers. Total Number of share issue :- Fresh issue is 41,360,294 shares, Offer for sale is 54,766,392 shares.

Go Digit General Insurance Limited IPO Details:

Open Date: May 15 2024
Close Date: May 17 2024
Total Shares: 96,126,686
Face Value: ₹ 10 Per Equity Share
Issue Size: 2,614.65 Cr.
Lot Size: 55 Shares
Issue Price: ₹ 258 - 272 Per Equity Share
Listing At: NSE,BSE
Listing Date: May 22 2024

Promoters And Management:

Kamesh Goyal is the Non-Executive Chairman of the Company and a nominee of GDISPL and has been a Director of the Company since its incorporation. He holds a bachelor’s degree in science from the University of Delhi. He holds a bachelor’s degree in law and master’s degree in business administration from the University of Delhi. He has several years of experience in the insurance industry and has served as the chief executive officer of Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance Company Limited. He is also an associate of the Insurance Institute of India. Jasleen Kohli is the Managing Director and Chief Executive Officer of the Company. She has attended the K J Somaiya Institute of Management Studies and Research for post graduate programme in management studies. She has several years of experience in the insurance industry and has served as the head - operations of Bajaj Allianz General Insurance. Chandran Ratnaswami, a Non-Executive Director of the company and FAL nominee, holds a civil engineering degree from IIT Madras and an MBA from the University of Toronto. He is the CEO of Fairfax India Holdings Corporation and Senior Managing Director of Hamblin Watsa Investment Counsel Ltd. Ratnaswami also sits on the boards of various firms, including Fairbridge Capital, Chemplast Sanmar, and IIFL Finance, bringing extensive investment sector experience.

Financials of Go Digit General Insurance Limited IPO:

A) Balance Sheet
Particulars ( In cr) 2021 2022 2023 9MFY24
Fixed Assets 102 148 162 161
Cash & Balance 160 146 279 122
Investment- Shareholders 1379 1601 2171 2117
Investment- Policyholder 4051 7646 10217 12669
Advances & Other Assets 311 505 659 947
Total Asset 6003 10046 13488 16016
Share Capital 848 859 874 874
FV 10 10 10 10
Reserves and Surplus 328 1034 1479 1616
Borrowing 0 0 0 200
Current Liability 3236 5752 7982 9587
Provisions 1538 2318 3066 3586
Other Liabilities 53 83 87 153
Total Liabilities 6003 10046 13488 16016
B) Profit and Loss Statement
Particulars (In Cr) 2021 2022 2023 9MFY24
Gross Written Premium (GWP) 3243 5267 7243 6680
Net Written Premium (NEP) 2632 4180 5909 5631
Premium Earned 1944 3404 5164 5115
Interest, Dividend and Rent 241 355 616 636
Total Revenue 2185 3759 5780 5750
Claims Incurred 1439 2519 3471 3560
Commission 68 159 144 1389
Operating Expenses 864 1455 2231 811
Operating Profit -185 -375 -66 -10
Income from Investment 67 81 105 141
Other Income 0 0 0 0
Other Expenses 4 2 4 2
PAT -123 -296 35 129
C) Cash Flow Statement
Particulars (In Cr) FY21 FY22 FY23 9MFY24
Cash Flow From Operating Activities
Premium received from policyholders 3617 6095 8235 6882
Payments to / from re-insurers, net of commission and claims -85 -338 -363 -161
Payments to / from co-insurers, net of claims 123 289 451 113
Payments of claims -484 -1069 -2061 -2169
Payments of commission and brokerage -123 -265 -434 -1507
Payments of other operating expenses -1029 -1684 -2661 -1215
Other Changes 0 0 0 -3
Tax -455 -550 -916 -676
Cash Flow From Operating Activities 1563 2479 2250 1263
Cash Flow From Investing Activities
Purchase of fixed assets -27 -50 -21 -13
Proceeds from sale of fixed assets 0 0 0 0
Purchase of investments -2410 -5535 -7189 -5714
Sale of investments 694 1624 4326 3628
Other 106 474 -370 475
Net Cash Flow From Investing Activities -1636 -3487 -2514 -1622
Cash Flow From Financing Activities
Proceeds from issue of share capital, net of share issue expenses 159 995 397 2
Proceeds from borrowings 200
Net cash flows from financing activities 159 995 397 202
Net Cash Flow 85 -13 -132 -157

Comparison With Peers:

Peers GWP (In Cr) Combined Ratio Mcap (In Cr) CMP Mcap/GWP)
Go Digit General Insurance Limited 7243 107.40% 24948 272 3.44
New India Assurance Company Limited 38791 117% 36264 220 0.93
Star Health and Allied Insurance Company Limited 12952 95.30% 31386 536 2.42
ICICI Lombard General Insurance Company Ltd 21770 104.50% 81877 1662 3.76
* All the data is as per FY23

Recommendation on Go Digit General Insurance Limited IPO:

Review and Recommendation of Go Digit General Insurance by team IZ is 5/10. 1. The company is committed to simplifying the insurance experience, utilizing innovation and transparency to enhance the customer journey in purchasing significant financial products. As a leading digital full-stack insurance company, it integrates technology across all facets of its operations, from product design and distribution to customer service. This approach has enabled the company to become a major player in the non-life insurance market, offering a range of customizable products including motor, health, travel, property, marine, and liability insurance. 2. Customer Base and Market Reach Since the inception of its insurance operations in 2017, the company has served over 43.26 million customers, with significant contributions from its motor and health insurance segments. Its customer-centric approach, combined with its technological capabilities, has enabled it to rapidly scale and maintain a high rate of customer acquisition. 3. Future Prospects and Risks Despite a proven track record of growth, the company acknowledges the challenges of predicting future operations due to its relatively short operational history and rapid expansion. There are also inherent risks in underwriting and premium pricing that could impact financial conditions and business operations. 4. Competition The company faces stiff competition in the Indian non-life insurance market from both public and private sector entities. Competitive factors include brand recognition, customer satisfaction, risk underwriting and pricing, distribution networks, product diversity, and technological capabilities. The company’s competitors often have advantages in terms of operating experience, capital resources, and product diversification, which necessitates continuous improvement in services and offerings. 5. The GWP has Increased from Rs. Crores in 3243 to Rs. 6680 Crores in 9MFY24. And NEP also Increased shows growth in operations or existing insurance contracts. 6. The Operating loss has decreased from Rs. 185 Crore in FY21 to Rs. 10 Crores in 9MFY24. 7. The PAT figures show a transition from losses in 2021 of Rs.123 Crore to profits in 2023 of Rs. 35 Crore and further improved in the 9MFY24 to Rs. 129 Crore. 8. As per FY23, GWP/Mcap is 3.44. Combined ratio is 107.4% 9. Market Capitalization is Rs. 24948 Crore.

Registrar of Go Digit General Insurance Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Go Digit General Insurance Limited 1 to 6 Floor, Ananta One, Pride Hotel Lane Narveer Tanaji Wadi, City Survey No.1579 Shivajinagar, Pune 411005, Phone: +91 20 67495400 Email: cs@godigit.com Website: https://www.godigit.com/

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