Digit’s founder-Chairman Kamesh Goyal is a veteran of the insurance industry with close to 33 years’ work experience
Canadian billionaire Prem Watsa-backed Digit Insurance has filed draft papers for an initial public offering (IPO). As per the documents, the company is looking to raise Rs 1,250 crore from a fresh issue of shares and through an offer for sale of 10.94 crore equity shared for an undisclosed amount.
Sources, however, said the total size of the IPO is likely to be around Rs 3,500 crore.
In an interaction with Moneycontrol on July 25, chairman and founder Kamesh Goyal had said Digit Insurance would assess the timing of its IPO based on market conditions after the company completes five years since its inception in October.
The Insurance Regulatory and Development Authority of India (IRDAI) norms do not allow promoters to sell a stake before five years.
Digit has also applied to the IRDAI seeking licences to set up a life insurance and a reinsurance entity.
Valued at $3.5 billion, the company raised a total of $284 million in 2021. Besides Fairfax Holdings, the company counts Sequoia Capital India, A91 Partners, Faering Capital, TVS Capital and cricketer Virat Kohli as its investors.
(This is a developing story. Please check back for updates.)