Regulator SEBI puts Go Digit's public issue in abeyance
New Delhi: Financial market regulator Securities and Exchange Board of India (SEBI) has kept in "abeyance" the initial public offerings of Go Digit General Insurance.
"Issuance of observations kept in abeyance," the market regulator said in its latest processing status of draft offer documents without giving any explanation. As per SEBI (Issuance of Observations on Draft Offer Documents Pending Regulatory Actions) Order, 2020, issued by SEBI on February 05, 2020, SEBI is obligated to keep issuance of observations in abeyance for a period of 30 days or 45 days or 90 days or more, as the case may be.
Earlier, in mid-August, the insurance company, which is backed by Canadian billionaire Prem Watsa's Fairfax Group, filed draft papers with the market regulator to raise funds through public issues.
The proposed IPO is a mix of a fresh issue and an offer for sale (OFS). As per the Draft Red Herring Prospectus (DRHP) submitted by the company with the market regulator SEBI, Go Digit General Insurance intends to raise up to Rs 1,250 crore via the fresh issue and offer 109,445,561 shares in the offer for sale.
The offer for sale (OFS) includes Go Digit Infoworks Services (up to 109,434,783 shares), Nikita Mihir Vakharia, jointly with Mihir Atul Vakharia (up to 4,000 shares), Nikunj Hirendra Shah, jointly with Sohag Hirendra Shah (up to 3,778 shares) and Subramaniam Vasudevan, jointly with Shanti Subramaniam (up to 3,000 shares), as per the draft paper.
Go Digit General Insurance Limited is a digital full-stack general insurance firm. Cricketer Virat Kohli is an investor and brand ambassador of the company.
The company offers motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance and other insurance products. (ANI)