Why SEBI Has Kept Go Digit General Insurance IPO In Abeyance

Markets regulator SEBI has kept in abeyance the “issuance of observations” with regard to the IPO of Go Digit General Insurance Ltd which had filed draft papers for the IPO on August 17. Go Digit’s proposed IPO consists of a fresh issue of Rs 1,250 crore from the company and an offer for sale of 109,445,561 shares from four shareholders, including the promoter. Though promoted by Kamesh Goyal, former CEO of Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance Company, Go Digit, which counts cricketer Virat Kohli and his wife, Bollywood actor Anushka Sharma among its investors, is largely controlled by the Fairfax Group owned by Canadian person of Indian origin, Prem Watsa, who was awarded the fourth highest civilian award of India, Padma Shri, in 2020. SEBI has not disclosed the reason for withholding the issuance of observations on Go Digit IPO. However, a close scrutiny of the IPO draft papers reveals that the company is yet to obtain IRDAI’s clearance on certain matter related to the promoter-company. Currently, almost the entire promoter holding (83.65%) of the issuer company is held by Go Digit Infoworks Services Private Ltd (GDISPL). While Kamesh Goyal and his Oben Ventures LLP together hold 54.75% of GDISPL’s tiny equity capital of Rs 1.02 crore, Mauritius-registered FAL Corporation of the Fairfax group has a minority stake of 45.25%. By arrangement with https.//investlive.net/