Go Digit filed its Draft Red Herring Prospectus with SEBI in August 2022 to raise about Rs 1,250 crore by issuing fresh shares. But India's capital market regulator SEBI has put the IPO application in “abeyance” (ie kept on hold), thereby pausing the online insurance company's plans of going public.
What is SEBI's IPO process like? Once companies file their Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), the regulator shares a weekly update on the status of the IPO. The SEBI looks up the documents and seeks clarifications wherever necessary before the final approval and listing. As per the latest update, the status of Go Digit IPO seems to be in abeyance due to SEBI's observance of certain issues. SEBI will process the DRHP further only after it receives Go Digit's reply on the matter.
Why SEBI puts some IPOs in abeyance:
SEBI normally never issues reasons about why they have paused a particular company's IPO process, but as per the SEBI rules and guidelines, SEBI usually puts an IPO in abeyance if:
Are there any other companies that are in abeyance? What's the status update of the other IPOs in the pipeline?
SEBI's status updates are basically intended to make the IPO process transparent to some extent for prospective shareholders. For eg:
Has SEBI put other IPO's in abeyance before? Yes. SEBI has previously held the below companies' IPOs in abeyance for undisclosed reasons. But once the matters of concern are resolved, the IPO process usually returns on track.
Btw, what does Go Digit do?
ਡੂ ਦ ਡਿਜਿਟ ਡਿਜਿਟ!— Virat Kohli (@imVkohli) June 28, 2022
Every corner of the nation is doing the Digit Dance! @heydigit
When 3 crore people show trust in my Digit for their car, bike, health and travel insurance, I can't help but dance myself!
Just Do the Digit! https://t.co/5h1UsejAGE#DoTheDigitDigit #ad pic.twitter.com/UeZ2FAdbX7
Go Digit sells auto, health, and travel insurance and is part of a group of firms that is attempting to expand the number of individuals in India that buy insurance coverage. Go Digit has simplified the process of buying insurance, allowing users the ability to self-inspect, claim submissions and process service requests from their smartphones. The company is backed by Sequoia Capital India, TVS Capital, A91 Partners, actress Anushka Sharma and cricketer Virat Kohli.