Go Digit IPO Day 2: GMP, Subscription Status, Price Review, and Whether to Apply for this Virushka-Backed IPO


Digit Insurance, backed by power couple Virat Kohli and Anushka Sharma, recently hit the Indian stock market with its initial public offering (IPO). On the second day of trading, let’s dive into the GMP (Grey Market Premium) subscription status, price review, and whether you should consider applying for this IPO.

The GMP is a measure of investor sentiment and demand for an IPO before it hits the stock exchange. As of the second day, Digit Insurance’s GMP stood at ₹125-130 per share. This indicates a significant premium over the IPO price range, which was set at ₹1,095-1,175 per share.

When evaluating an IPO, it is crucial to consider the company’s history and performance. Digit Insurance, founded in 2016, has established itself as a leading insurtech player in India. The company offers various non-life insurance products, including health, motor, and travel insurance. It has leveraged technology to provide seamless and customer-centric insurance solutions, gaining popularity among customers.

Digit Insurance has witnessed substantial growth in recent years. Its gross written premium (GWP) increased from ₹2.54 billion in fiscal year 2018 to ₹9.15 billion in fiscal year 2021, representing a CAGR of around 82%. This growth can be attributed to its focus on digitization, innovative product offerings, and efficient claim settlement processes. Furthermore, the company has maintained a strong solvency ratio, indicating its ability to meet obligations.

The IPO, which opened on November 1st, received a positive response from investors on the first day. The retail portion of the IPO was subscribed 2.27 times, while the overall subscription stood at 1.08 times. This indicates healthy demand for Digit Insurance’s shares.

Considering the GMP and subscription status, should you apply for this IPO? It depends on your investment strategy, risk appetite, and long-term outlook. As with any investment, there are risks involved. It is essential to thoroughly analyze the company’s financials, competitive landscape, and future prospects before making a decision.

Some factors that could influence the success of Digit Insurance include its ability to maintain its technological edge, adequately manage claims, adapt to regulatory changes, and sustain growth in a highly competitive industry. Investors should also keep an eye on the broader market conditions and potential risks associated with the COVID-19 pandemic.

In conclusion, Digit Insurance’s IPO has generated enthusiasm among investors. The GMP and subscription status indicate a favorable response from the market. However, before applying for this IPO, it is crucial to conduct thorough research, assess the company’s financials, and evaluate your investment objectives. Seek advice from financial professionals if needed to make an informed decision.

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