Post addressing concerns of the market regulator, SEBI (Securities and Exchange Board of India), Go Digit Insurance has re-filed draft papers for its initial public offering (IPO) worth $440 million. In February, the market regulator expressed concerns regarding the company’s Employee Stock Ownership Plans (ESOP) and returned the draft papers. As a consequence, it had put the offering on hold for several months.
Insurtech startup Go Digit General Insurance Ltd is a company backed by Virat Kohli and his wife Anushka Sharma. According to the latest Draft Red Herring Prospectus (DRHP), the IPO consists of a fresh issue of shares worth 12.5 billion rupees ($152.1 million). It also comprises an offer for sale of 109.4 million shares, which remains unchanged from the previous filing.
After the refusal of the draft by SEBI, Go-Digit said in a statement, “The draft red herring prospectus has been returned in terms of Regulation 5(2) of the SEBI (ICDR) Regulations, 2018, which exempts rights granted under employee stock option plans to subsist at the time of filing a draft red herring prospectus but does not similarly exempt employee stock appreciation rights.”
Now the company has amended its Employee Stock Appreciation Rights scheme to employee stock options and refiled the revised DRHP. The company has now provided stock appreciation rights, which enable an employee to benefit from any increase in the value of the company’s shares over a specified period of time.
Go Digit operates in the general insurance sector and among its investors are the Canadian billionaire Prem Watsa’s Fairfax Group and TVS Capital Funds. It provides insurance for automobiles, health, travel, property, marine, and liability, among other products. Digit is one of the first life insurers in India to function entirely in the cloud. Furthermore, the company has created application programming interface integrations with a number of channel partners.
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