Go Digit IPO: Virat Kohli, Anushka Sharma may clock 263% return on investment

Indian cricketer Virat Kohi and his wife Anushka Sharma, a renowned Bollywood personality, may clock a return of 263% on their investment in insurance startup Go Digit following its initial public offering (IPO) next week, reports said.

The celebrity couple hold a cumulative stake worth ₹2.5 crore, the Economic Times reported. Considering the upper price band of the IPO, the investment may give a post-IPO return of ₹9.06 crore, the newspaper said, adding that this would translate into a notional profit of ₹6.56 crore.

Kohli, the former captain of the Indian national side, had reportedly bought 266,667 shares in Go Digit in January 2020. The stake was acquired at a price of ₹75 each on a private placement basis. The value of his investment stood at ₹2 crore.

Additionally, his wife Anushka had reportedly bought 66,667 shares at ₹75 each, amounting to a cumulative value of ₹50 lakh.

Go Digit, which is set to launch its IPO next week, has announced a price band in the range of ₹258 to ₹272 per share. Considering the upper limit of the price band, the stake held by Kohli could give a return of ₹7.5 crore, and that held by Anushka may give a return of Rs 1.81 crore, the report said.

Go Digit IPO: Key details

The Bengaluru-based Go Digit General Insurance Ltd will float its IPO next week, with the window for subscription opening on May 15 and closing on May 17. As mentioned above, the price band has been fixed in the range of ₹258 to ₹272.

The offer consists of a fresh issue of equity shares worth ₹1,125 crore, along with an offer for sale (OFS) of 5.47 crore equity shares.

The bidding for anchor investors will take place on May 14. The lot size of the offer is 55 equity shares and in multiples after that.

The Go Digit General Insurance IPO has set aside at least 75% of its shares for qualified institutional buyers (QIBs). Only up to 15% of its shares have been reserved for non-institutional investors (NIIs), while not more than 10% of the offer is available to retail investors.

The company will use the proceeds from the proposed IPO for general corporate purposes, maintain solvency levels, and improve its capital base.

The book-running lead managers for the issue are ICICI Securities, Axis Capital, Morgan Stanley India Company, HDFC Bank, IIFL Securities and Nuvama Wealth Management.