GO DIGIT General Insurance Limited IPO Company Profile :
GO DIGIT General Insurance Limited is one of the leading digital full-stack non-life insurance companies, leveraging its technology to power what it believes to be an innovative approach to product design, distribution, and customer experience for motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance, and other insurance products, which the customer can customize to meet his or her need. The technology platform supports product design by enabling the incorporation of modular product architecture and provides the backbone for the application program interfaces (“API”), applications, portals, and websites that allow customers and partners to engage with the company conveniently. According to the papers, cricketer Virat Kohli and his wife Anushka Sharma are among the investors in the firm*.
GO DIGIT General Insurance Limited IPO Products :
- Motor Insurance:
Includes personal insurance for cars and motorcycles, as well as commercial insurance for rickshaws, taxis, and trucks. In Fiscal 2022 and Fiscal 2021, motor insurance offerings generated ₹3,275.75 crores and ₹2,432.83 crores of GWP, or 62.2% and 75.0% of our total GWP, respectively. This level of premium accounted for a market share of 4.5% and 3.5% respectively, of the total motor insurance premiums written by all non-life insurers in India, on a GWP basis, during the same time period, according to the RedSeer Report.
- Health Insurance:
Includes group and retail accident and medical insurance, such as corporate group health and individual health insurance, with a variety of standard coverage plans, as well as optional coverage. Health insurance is also one of our core product offerings, which accounted for 12.8% of the GWP in Fiscal 2022. The company has achieved a market share of 0.8% in Fiscal 2022 in the overall health insurance market in India.
- Property and Engineering Insurance:
Includes insurance covering homeowners or personal property, commercial insurance covering shops, factories, or offices, engineering insurance, and fire insurance, typically intended for individuals, entrepreneurs, micro-to small-to-medium-sized enterprises
- Travel Insurance:
Includes international travel and domestic flight amendment, no-show, cancellation, and delay insurance, including travel to or from the United States
- Personal Accident Insurance:
Include individual and group personal accident insurance. Group personal insurance can cover employment and non-employment relationships, including credit-linked group insurance, or policies that repay certain debt obligations in the case of death or covered serious illnesses.
- Liability Insurance:
Includes legal liability insurance, workmen’s compensation, public liability, product liability, management liability, and professional liability. Legal liability insurance protects individuals or institutions from legal liability arising out of any third-party bodily injury, third-party property damage, or third-party financial loss caused by the actions of the insured.
GO DIGIT General Insurance Limited IPO Financial Analysis:
| Particulars | FY-22(in cr.) | FY-21(in cr.) | FY-20(in cr.) | CAGR FY20-22 |
| Revenue | 3759.44 | 2185.03 | 1364.82 | 40.2% |
| Operating cost | 2679.05 | 1506.76 | 899.76 | |
| Gross profit | 1080.39 | 678.27 | 465.06 | 32.4% |
| Gross profit margin % | 28.74% | 31.04% | 34.07% | |
| Other Income | 81.49 | 66.93 | 54.35 | |
| Empl. Cost | 182.96 | 132.36 | 121.12 | |
| Other exp | 584.27 | 307.32 | 187.52 | |
| EBITDA | 394.65 | 305.52 | 210.77 | 23.3% |
| EBITDA Margin% | 10.50% | 13.98% | 15.44% | |
| Depreciation | 12.43 | 8.96 | 6.53 | |
| Interest | 12.36 | 7.61 | 6.63 | |
| Advertisement cost | 663.53 | 407.49 | 359.63 | |
| PBT | -293.67 | -118.54 | -162.02 | 21.9% |
| Total tax | 0 | 0 | 0 | |
| PAT | -293.67 | -118.54 | -162.02 | 21.9% |
| Dep./revenue% | 0.33% | 0.41% | 0.48% | |
| Int./revenue% | 0.33% | 0.35% | 0.49% |
GO DIGIT General Insurance Limited IPO Segment analysis:
| Segment | FY-22(in cr.) | % | FY-21(in cr.) | % | FY-20(in cr.) | % |
| Fire Insurance | 63.17 | 1.68 | 41.82 | 1.91 | 17.45 | 1.28 |
| Marine Insurance | 1.04 | 0.03 | 0.92 | 0.04 | 0.04 | 0.003 |
| Miscellaneous Insurance | 3695.23 | 98.29 | 2142.29 | 98.04 | 1347.33 | 98.72 |
| Total | 3759.44 | 100.00 | 2185.03 | 100.00 | 1364.82 | 100.00 |
GO DIGIT General Insurance Limited IPO Strengths:
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GO DIGIT General Insurance Limited promotes a high-quality customer experience by providing Relevant, transparent, and customizable coverage, Simple, understandable documentation, and Straightforward, efficient, paperless processes.
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GO DIGIT General Insurance Limited has exhibited an ability to benefit from growth in the primary market and capture market share. In Fiscal 2022, it achieved 62.4% GWP growth as compared to Fiscal 2021, and with the Offer, increased its market share among the overall general insurers from 1.6% in Fiscal 2021 to 2.3% in Fiscal 2022 in terms of total GWP from private and public general insurers.
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GO DIGIT General Insurance Limited has modular APIs that allow it to share data between the systems and the partners’ third-party website and/or portal in a specified manner, allowing it to reduce human intervention. The company integrates APIs in the business across products for policy issuance, policy servicing, payments, and claims.
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GO DIGIT General Insurance Limited has used its own channels such as its website, partner portals and social media accounts, to communicate its approach to insurance and promote its work. The company has appointed marketing associates and managers to increase public awareness and build the brand image. It has also invested in an advertising campaign with its brand ambassador, with the objective of increasing awareness of the brand across all products nationally.
GO DIGIT General Insurance Limited IPO Risk factors:
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GO DIGIT General Insurance Limited has a track record of reporting losses, and may not achieve profitability in the near future. The company incurred a loss after tax of ₹ 293.67 crores in Fiscal 2022, ₹ 118.54 crores in Fiscal 2021, and ₹ 162.02 crore in Fiscal 2020.
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Catastrophic events, including natural disasters, terrorist attacks, or nuclear disasters, could materially increase the liabilities for claims by customers, result in losses in the company’s investment portfolios, and have a material adverse effect on the business, financial condition and results of operations.
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GO DIGIT General Insurance Limited is dependent on the “Go Digit” and “Digit Insurance” brands. The business may be subject to periodic negative publicity, which could have a material adverse effect on the business, financial condition, results of operations, and prospects.
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GO DIGIT General Insurance Limited loss reserves are based on estimates as to future claims liabilities and if they prove inadequate, it could lead to further increases in reserves and materially adversely affect its results of operations.
Source: GO DIGIT General Insurance Limited DRAFT RED HERRING PROSPECTUS (DRHP)
GO DIGIT General Insurance Limited IPO FAQ
Ans. GO DIGIT General Insurance Limited IPO will comprise fresh share issue and new offer share issue. The company aims to go public to accelerate its growth and expansion plan.
Ans. The company will open for subscription on <>.
Ans. The minimum lot size that investors can subscribe to is <> shares.
Ans. The GO DIGIT General Insurance Limited IPO listing date is <>.
Ans. The minimum lot size for this upcoming IPO is <> shares.
Ans. GO DIGIT General Insurance Limited IPO will comprise fresh share issue and new offer share issue. The company aims to go public to accelerate its growth and expansion plan.
Ans. The company will open for subscription on <>.
Ans. The minimum lot size that investors can subscribe to is <> shares.
Ans. The GO DIGIT General Insurance Limited IPO listing date is <>.
Ans. The minimum lot size for this upcoming IPO is <> shares.