Bengaluru-primarily primarily based insurtech start-up Rush Digit Customary Insurance coverage on Friday provided that its Rs 2,615 crore IPO, which is ready to open on May well moreover 15 and shut on May well moreover 17, could well enjoy a tag band of Rs 258 to Rs 272 per share.
The IPO contains a unique allege of shares worth Rs 1,125 crore and an offer for sale (OFS) of 54,766,392 shares, in step with the draft prospectus. At the higher tag band of Rs 272, the OFS would be worth about Rs 1,489.64 crore.
Bids would be made for a maximum of 55 equity shares and in multiples of 55 shares thereafter. About 75% of the IPO has been kept reserved for QIB (certified institutional investors), 15% for non-institutional merchants and the remainder 10% for retail merchants.
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The PE ratio, in step with the diluted EPS for 2023, on the higher differ of the associated price band is 680x as when put next to the frequent industry explore neighborhood of 46.13x.
In the IPO, promoter Rush Digit Infoworks and different recent shareholders are offloading stakes while megastar couple Virat Kohli and Anushka Sharma will remain merchants.
In 2020, cricketer Virat Kohli supplied 266,667 shares of the firm for Rs 2 crore while actress partner Anushka Sharma invested 50 lakh through a non-public placement.
Sooner than the IPO, the promoter neighborhood including Canada-primarily primarily based Fairfax, Kamesh Goyal, Rush Digit Infoworks, and Oben Ventures, owned an 83.31% stake in the firm.
Rush Digit's IPO hit loads of hurdles over compliance complications, which delayed approval for the public offer. Sebi had returned the draft offer doc twice as the regulator raised issues over share issuance.
Rush Digit, which operates in the general insurance sector and counts Canadian billionaire Prem Watsa's Fairfax Group and A91 Partners amongst its backers, refiled its IPO papers with Sebi in March final year, which the regulator permitted in March this year.
The insurance firm plans to utilise the rating proceeds in direction of augmenting its capital sinful and affirming the solvency ranges.
In the 9-month length ending December 2023, Rush Digit's rating earned top rate rose to Rs 5,115 crore vs Rs 3,767 crore in the corresponding length of the outdated monetary year. It reported a profit after tax of Rs 129 crore in the 9 months vs Rs 10 crore in the first 9 months of FY23.
ICICI Securities, Morgan Stanley India, Axis Capital, Edelweiss Financial Companies, HDFC Bank, and IIFL Securities are the e-book-working lead managers for the IPO.
As a digital corpulent-stack insurance firm, Rush Digit affords motor insurance, health insurance, scramble insurance, property insurance, marine insurance, liability insurance, and different insurance products.
