Digit Insurance IPO: Digit Insurance, invested by Canadian billionaire Prem Watsa, is looking to raise $ 500 million through an IPO. The company will raise this money at a valuation of $ 4.5 to 5 billion. Three people tracking the developments told Reuters.
Digit was established in 2017 and is now trying to tap into the general insurance market of India along with the need of users for better customer experience like easy claim settlement. However, the performance of IPOs in the country during the last few months has not been good.
The performance of LIC’s IPO recently has also not been good. LIC has been listed in the stock market at a level below its IPO price and its shares are still trading below the IPO price.
Listing plans in January
Digit has appointed Morgan Stanley and Indian investment bank ICICI Securities for the deal. He said it is planning to file the draft document with the market regulator by September and get listed in January.
Digit declined to comment, calling it “speculation”. While ICICI declined to comment, Morgan Stanley did not respond to emails sent in this regard.
Funds raised this month at $4 billion valuation
Earlier this month, Digit raised funds at a valuation of $4 billion. The company has so far raised $400 million from Sokoia Capital, A91 Partners and Fairing Capital, in addition to Fairfax.
Recently, the IPO of India’s largest insurance company LIC was listed in the market with a decline of 7.8 percent. Earlier in November last year, fintech company Paytm had launched a $2 billion IPO. On the other hand, after the boom of 2021, it has become difficult for Indian startups to raise money.
There is a condition of operating for 5 years for IPO
India’s insurance regulator is allowed to bring IPOs for companies that are at least 5 years old in the sector, which Digit will fulfill by September. Digit plans to raise funds by issuing new shares with Fairfax. Fairfax, with 30 per cent stake, is the largest shareholder, which can reduce its stake through an IPO.