Go Digit General Insurance Re-Files IPO Papers With SEBI

Insurtech startup Go Digit General Insurance Ltd. has re-filed its draft red herring prospectus with SEBI after addressing the market regulator's concerns as it seeks a nod again to go public.

The startup, backed by Canadian billionaire Prem Watsa's Fairfax Financial Holdings Ltd. and cricketer Virat Kohli, will see a combination of fresh issue of shares worth Rs 1,250 crore and an offer for sale of 10.9 crore shares in its initial public offering, which remains unchanged from the previous filing.

SEBI had returned the Bengaluru-headquartered insurtech's DRHP in January. The company had cited that the employee stock appreciation rights issued are not exempt under SEBI regulations.

Now, stock appreciation rights provided by the company allow an employee to profit from any appreciation in value of shares of the company during a predetermined period of time. However, employees do not have to pay the exercise price as in case of employee stock option, if they hold stock appreciation rights. They would receive the sum of the increase, either in stock or cash.

Since the SEBI regulations did not exempt such rights, the company was deemed to be ineligible to go public.

The insurtech has now addressed the market regulator's concerns, amending its employee stock appreciation rights scheme to employee stock options and refiled the revised DRHP.

The company plans to use the IPO proceeds to maintain its solvency ratio.