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
B) Profit and Loss Statement
C) Cash Flow Statement
| 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 |
| 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 |
| 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 |
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.
Lead Manager of Go Digit General Insurance Limited IPO:
Registrar of Go Digit General Insurance Limited IPO:
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/
Discussion on Go Digit General Insurance Limited IPO:
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Over valued.Not applying.