SEBI disrupts IPO plans of Fairfax Group backed by Digit Insurance

By Anusha  | Date: September 21, 2022

SEBI disrupts IPO plans of Fairfax Group backed by Digit Insurance

As per the latest reports, the Security and Exchanges Board of India (SEBI) has reportedly put the Initial Public Offering (IPO) plans of Fairfax Group backed by Go Digit General Insurance Limited on hold due to unknown reasons.

SEBI’s official website, however, claims that the IPO has been kept in ‘abeyance’ and certain observations have been sent, with no further notices relating to the development.

Whereas, Digit Insurance had previously planned to raise nearly USD 440 million with the aid of an IPO for its non-life business venture. The firm was gearing up to accumulate a valuation of nearly USD 4.5 billion to USD 5 billion through the listing.

While SEBI has been keeping silent regarding the reasons behind its decision, sources akin to the internal strategies of the watchdog claimed that the regulator smelled something fishy when the privately held Digit Insurance issued more than 200 shares to individuals, which is a serious violation of the regulations put in place by the Indian law.

Moving forward, Digit Insurance would primarily focus on mulling over the aforementioned concerns and subsequently resolve the issues raised by SEBI on an appropriate discussion board to go forth with its IPO plans.

For the unversed, Digit Insurance was founded in 2017 and is currently trying to penetrate into the general insurance space on the back of customer service benefits as well as easy claim settlements. The company has also made its mark separately within the life insurance market with the introduction of its most recent Go Digit Life venture.

Interestingly, the prospectus forwarded by the company in August states that the IPO would include new shares worth USD 158 million and existing stakeholders would be able to sell close to 109.4 million shares.

 

Source Credits: - https://www.nasdaq.com/articles/digit-insurance-ipo-put-on-hold-by-indian-watchdog

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Anusha     ibmag.com

Anusha

As a voracious reader and thinker, employing words has always been my preferred method of narration. Anusha’s conviction that a drop of ink possesses the ability to influence even the most stubborn minds has been strengthened by completing a Master’s degree in Engl...

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